Mortgages and Chapter 13

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Mortgages and Chapter 13 Bankruptcy

Chapter 7 bankruptcy can only temporarily stop foreclosure and likely cannot ultimately save your home. Chapter 13 bankruptcy will stop foreclosure and reinstate your mortgage if the payment plan is successfully completed. Another benefit of Chapter 13 is the opportunity to modify your mortgage with the help of a court appointed mediator. Also if you have a second mortgage that is totally "underwater" (if the house is worth less than the first mortgage we may be able to help you eliminate the second mortgage. If you own real estate that is not your homestead, we may be able to "cramdown" the any mortgages to the value of the property. The remaining portion of the loan will then be unsecured.

Stop Foreclosure & Catch up with Chapter 13

Financial problems can have many consequences, especially if you are a homeowner. If you fall behind on your mortgage, you risk the loss of your home through foreclosure. In a chapter 13, If you can afford to make future payments as they come due and catch up on past due amounts over the three to five year payment plan, foreclosure will be averted and the home will be saved.

Chapter 13 Mortgage Modification Mediation

Bankruptcy courts have a program available under chapter 13 called Mortgage Modification Mediation. If you have been frustrated by mortgage modification programs outside of bankruptcy, you will be happy to know this program is much different. There are many benefits to this court directed program including:

  • The court appoints a neutral mediator to "referee," 
  • The program has a "good faith" requirement which encourages parties to reach an agreed solution.
  • Payments during mediation may be limited to 31% of gross income or, in limited cases, delayed until confirmation of the plan
  • The program directs documents and communications flow through a web-based portal
  • If the lender does not object within two weeks, the court will start the process automatically 

Stripping Second or Third Mortgages in Chapter 13

If the value of your home has fallen, you may owe substantially more than what it's worth. In today's housing market, many homes are worth less than what is owed, leaving second or third mortgages "unsecured". By filing for Chapter 13 bankruptcy, a homeowner can seek a court order to cancel their second or third mortgage IF there is no equity above the value of the first mortgage. In other words, if the house isn't worth as much as the first mortgage, any other mortgages may be "stripped off" and be converted to unsecured debt.

Foreclosure options we can help you with outside of chapter 13 include:

  • Loan modification
  • Deed in lieu / Cash for Keys
  • Strategic default

Getting reliable legal advice is important when the loss of a home is imminent. At the Holland Law Group our attorneys are skilled in Bankruptcy Law, Debt Defense, Foreclosure Defense and other debt relief solutions. We will fight to protect your assets and rights. Our firm has experience representing clients in financial trouble, and will do everything possible to help resolve your situation. Our firm will explore all of your legal alternatives and help you arrive at the best decision regarding your home and provide the assistance you need to improve your overall financial condition.

The Holland Law Group is a dedicated firm for bankruptcy, debt defense, and foreclosure defense who offer sound financial and legal advice.

If you are behind on your mortgage payments don't delay click here to schedule a free consultation or call us today @ 941-306-3601 

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At Holland Law we focus on Consumer Bankruptcy and Debt Defense. We proudly serve Sarasota, Manatee and Charlotte Counties and expanding to serve all of Central and South Florida, from coast-to-coast. We offer free phone or in-office consultations in Bradenton, Sarasota, Lakewood Ranch, Port Charlotte and across the Central and South Florida region. Contact us through the form on this page or call us at (941)-306-3601 to speak with an experienced bankruptcy and debt defense attorney today. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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