Palmdale Second Mortgage Lawyers
A second mortgage is an attractive option for those looking to borrow against their home’s equity, enabling them to pay credit card debt, do a home renovation, or other improvements. The interest rates are often more favorable than other loans, and the amount you do pay could be tax-deductible. However, there is a crucial point to keep in mind about second mortgages, because they are secured by your home. This means a lender could foreclose if you do not make timely payments in full.
Fortunately, you do have options to avoid losing your home to foreclosure because of a second mortgage. Bankruptcy is suitable in some situations, and settlement may be possible. Wadhwani & Shanfeld is prepared to assist with all opportunities that help you stay in your home, and we can advise you on other debt as well. Please contact us to schedule a consultation with a Palmdale second mortgage debt lawyer. You can also check out some useful information about solutions.
Debt Settlement for Second Mortgages
Debt settlement for a home loan involves working with the lender to reduce or eliminate the debt by agreement. In the case of a 2nd mortgage, the steps include:
- Negotiating the amount down to pay less than the total, through a lump sum payment;
- When the lender accepts and you pay the agreed amount, the lien that was attached to your property is conveyed to you; and,
- The encumbrance on your property is eliminated and the lender releases any further claims.
Lenders are often willing to work out a debt settlement because they are lower on the priority list than your original lender.
Chapter 13 Bankruptcy
Filing for this type of bankruptcy can also remove the encumbrance on your home through lien stripping. Though a second mortgage is a secured debt with your home as collateral, this lender’s interests will always fall below the senior loan holder on the original mortgage. The second mortgage transitions into an unsecured debt when you are underwater, and the lien on property is stripped away.
You can also reorganize your second mortgage through Chapter 13. As part of your debt repayment plan, you can cover arrears over a three or five year period. The lender cannot take collection action during this time.
Our Services to Support Clients
Second mortgages represent challenges when you are struggling with debt, so it is important to take advantage of all options. Our Southern California second mortgage lawyers at Wadhwani & Shanfeld will advise you on the most favorable solutions. We are skilled in negotiations with lenders, but we are ready to proceed with bankruptcy for the right situation.
Call Now to Speak to a Palmdale Second Mortgage Lawyer
If you are falling behind on payments for a second mortgage, do not delay in taking action to protect your rights and home. Our team at Wadhwani & Shanfeld will help you understand the key concepts, so you have guidance in making decisions that suit your needs. Please contact us to set up a consultation with a Southern California second mortgage lawyer today.