Florida Unsecured Second Mortgage Lawyer
If you use your home as collateral on a loan, the lender will put a lien on your house to secure the debt. At times when the real estate market is down, the value of your home may be less than the amount you owe on it. Under Chapter 13 bankruptcy, you may be able to have the liens removed if your house is valued at less than the amount of the first mortgage. This process is known as lien stripping.
Lien stripping is extremely complex, and it is important that you have an experienced Tampa lien stripping attorney who understands the law and will work to ensure that your interests are protected. At the law firm of Buddy D. Ford, P.A., we represent clients throughout Florida who need help removing second, third or even fourth mortgages.
Understanding Lien Stripping
Suppose you owe $250,000 on your primary mortgage. You have also taken out a second mortgage for $100,000 and a third mortgage for $50,000. If the value of your home has dropped below $250,000, there is no equity to secure the second and third mortgages. Therefore, they can both be reclassified as unsecured debt and the liens removed from your property in a Chapter 13 bankruptcy filing.
Courts outside of bankruptcy are courts of law and must rely on the terms of the purchase agreement. In these cases, the lender would win because you signed an agreement saying you would pay the money. Bankruptcy courts, on the other hand, are courts of equity. They have the power to impose the doctrine of equity, making the process of lien stripping possible.
Call for a Free Consultation
Contact our office today to learn more about lien stripping and how we can help you. We are available during regular business hours and by appointment evenings and weekends. You can reach us by phone at 813-463-2835, toll free at 877-547-1561 or via e-mail.
We are a debt relief agency. We help businesses and individuals file for debt relief under the Bankruptcy Code.
