Are you one of the many homeowners in Florida weighing your options about a second mortgage? Have you started looking into walking away from your mortgage? At The Law Offices of John E. Mufson, our attorney provides skilled guidance to homeowners interested in stripping second mortgages.
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Stripping Second Mortgages
If you have a secured second mortgage, it can be converted — or “stripped” — into unsecured debt through Chapter 13 bankruptcy. In order for you to strip a second mortgage, the principal balance of the first mortgage must be greater than the market value of your primary residence. When the second mortgage is converted into unsecured debt, it is then combined with your other unsecured debt and included in the Chapter 13 debt repayment plan. Your home can also be owned free of the second mortgage, once you have completed your Chapter 13 plan payments.
In a strategic foreclosure, you purposely do not make your mortgage payments. In Florida, strategic foreclosure does not affect your credit. Additionally, with help from our skilled attorney John E. Mufson, you can go through the process without being required to pay a deficiency judgment. With the money you are able to save by not making your mortgage payment, you can buy another property with cash. If your mortgage is underwater, strategic foreclosure may be your most viable option.