There are instances in bankruptcy where a homeowner may have the ability to actually “strip” off mortgage liens on his real estate. It is rare for this to occur but if there was ever a time in history for this to happen, that time is now. There are various requirements but it basically comes down to this . . . (1) the debtor must file a Chapter 13 Bankruptcy (NOT a Chapter 7 Bankruptcy!) and (2) the value of the home must be less than the amount owed on any senior liens on the property.
What would your family benefit from getting rid of the entire amount owed on the second mortgage to your home? Imagine making an affordable monthly payment for a short time (3 to 5 years) and coming out the other side with no second mortgage to pay. Imagine lower monthly expenses and owning an asset that’s actually worth something. Would you be in a better position than you were before your bankruptcy filing?
