You may be able to strip 2d & 3d mortgages with chapter 13 bankruptcy! “Lien stripping” changes junior liens like 2d & 3d mortgages from secured debts to unsecured ones that can be discharged in bankruptcy without losing your home. The junior mortgage must be completely “underwater” in order to do strip it, so this has not happened in a while because real estate values have increased so much in the Bay Area since the last recession. But with the expected major recession or depression that has already started because of the coronavirus pandemic, a lot of foreclosures are expected, which will cause real estate values to come down, probably by a lot.
Most homeowners are not in a bad financial situation yet because of the pandemic, but a lot of people have lost their income and will be facing hard times soon. While bankruptcy is not a magical solution that will save your home without paying for it, if you lose a few or several months of income and get behind on your mortgage payments, chapter 13 bankruptcy is likely the solution to get back on track once you begin earning income again. An added bonus is that you can eliminate second and third mortgages with chapter 13 if they are completely underwater.
If you lose income temporarily and get behind on your mortgage, chapter 13 bankruptcy is probably a good solution for you. If you have junior mortgages that become underwater because of declining home values, you may be able to eliminate those mortgages also. If you are in need of financial help, contact a bankruptcy attorney today to make an appointment for a free consultation.