by Mitchell J. Nowack, Esq.
MIAMI - A few years ago, many homeowners in South Florida took advantage of low interest rates and increased equity in their home to take second mortgages (Fixed Mortgages, Home Equity Line of Credit, etc.) to pay down credit card debt, medical bills, home repairs and other loans and obligations.
With the economic recession impacting many of these same people, some losing their jobs or businesses, others having their hours and wages cut, keeping current on second mortgage payments has become difficult for many of these people.
Sometimes, it's a choice between feeding the family or paying the bank.
If you are one of the thousands of homeowners in South Florida that is now struggling with overwhelming debt and can't make your payments on your second mortgage, there may be some good news for you.
Chapter 13 of the Bankruptcy Code allows for the removal of a second mortgage if your first mortgage is "underwater" or in other words, if the value of your home is less than the payoff of your first mortgage, then the second mortgage can be removed as a lien on the property.
Regardless if the property value increases in the future, the second mortgage will be eliminated forever.
Chapter 13 will also eliminate all or most of your other unsecured debt (credit cards, medical bills, repossessions, etc.) as well.
This treatment of second mortgages is very important to consider in states like Florida, where residential values have decreased dramatically.
Many of the homes in our neighborhoods are worth much less than they were years ago when the second mortgages were obtained, so Chapter 13 is being used by many Floridians to address this debt.
So if you owe more money on the first mortgage then the house is worth and you are having trouble making your payments on the second mortgage or know you won't be able to pay much longer, you should call our law firm for a free consultation to evaluate what your options are to see if declaring personal bankruptcy is the right course for you.
We have handled hundreds of bankruptcies that have eliminated second mortgage obligations and have the understanding and ability to save your home from foreclosure and get you back on your feet again.
Call me today for a FREE CONSULTATION at 888-813-4737 or email me to sit down and explore your options and to help get your life back on track.
We exclusively handle Florida bankruptcies and bankruptcy-related issues, such as foreclosures. I, Mitchell Nowack, have been a practicing bankruptcy attorney for more than 15 years. 