Stripping A Second Mortgage

Chapter 13 bankruptcy is usually the only effective way to relieve yourself of the debt burdens causing you to fall behind on mortgage payments. If you want to save your home from foreclosure and keep it rather than losing it in a short sale transaction, the comprehensive relief provided by bankruptcy will be your best option.

At Sigmon & Henderson, PLLC, in Gastonia, our attorneys can help you address the underlying problems of bankruptcy, which is essential to your family's ability to keep your home for the long term. Mortgage modification and foreclosure mediation are usually only short-term fixes. They do not address second mortgages and other obligations such as home equity lines of credit and liens on your home.

Without bankruptcy protection, lenders can continue to charge you interest and late fees with no guarantee of rate protection, and soon you are back to where you began, overwhelmed with debt and struggling to make the payments necessary to keep your home.

Contact Sigmon & Henderson, PLLC, to schedule a free initial consultation with an experienced lawyer. We have been guiding the informed decisions of homeowners throughout North Carolina since 1979. Call us today at 704-269-6374.

Gastonia Foreclosure Defense Attorneys

True foreclosure defense and stripping a second mortgage are often possible only through a professional Chapter 13 bankruptcy filing. Bankruptcy protections allow you to remove, reduce or eliminate certain financial burdens on property that has fallen in value, including:

  • Second mortgages
  • Home equity lines of credit
  • Tax liens
  • Mechanic's liens
  • Other liens

Second mortgages on properties that have fallen in value usually have become unsecured mortgages because the property is worth less than what the homeowner owes on the first mortgage. Other unsecured loans such as home equity lines of credit and judgments against you such as liens can be removed, reduced or restructured. This process is often called "lien stripping."

Reducing your financial obligations through bankruptcy allows you to afford a debt repayment plan that will protect your home, car and other assets as long as you stick to your budget and continue to make monthly payments after the completion of the bankruptcy process.