Underwater Mortgage and Bankruptcy Lawyer for Riverdale, Jonesboro, and Clayton County
If you are in debt and trying to determine whether to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy you may want to consider the value of your home in your decision.
Specifically, with the help of Fayette County bankruptcy attorney A.L. Hamilton & Associates LLC, you may be able to eliminate the second mortgage on your home though a little used procedure known as “mortgage stripping” if you qualify to file for Chapter 13 bankruptcy.
Will a Lien Strip Work for me and my situation?
Many people take out two mortgages to purchase a home. Normally, 80% of the property’s value is covered by the first mortgage and the second mortgage covers the remaining 20%. This is commonly referred to as an 80/20 mix. In some cases, an individual may use a Home Equity Line of Credit (HELOC) instead of a second mortgage.
Say that this is your situation and you took out a second mortgage on your property. It does not matter where your property is located whether it be Atlanta, Riverdale, Fayetteville, Newnan, Peachtree City or any other city or county. The process is the same throughout Georgia.
However, now you find that your home is underwater due to the housing collapse and you owe more to the bank than the property is worth. Unfortunately, many home prices have decreased to the point where their current market value is worth less than the home owner’s first mortgage!
For instance:
- You purchased you home at the peak of the market for: $300,000
- Amount owed on your first mortgage: $200,000
- Amount owed on your second mortgage: $50,000
- CURRENT market value of your home: $190,000
If this is your situation, you may be able to avoid foreclosure with the help of our experienced bankruptcy attorneys by filing for Chapter 13 bankruptcy. Doing so may allow you to “strip” your second mortgage because the value of your home is fully covered by your first mortgage.A.L. Hamilton & Associates can help. Call our Fayetteville underwater mortgage attorneys at 678-369-7021 for a free consultation today.
