When considering whether or not to remove the lien over a residence held by a 2nd mortgage or HELOC, there are several important factors to consider.
In order to remove the second lien, the house or residence must appraise at a value that is less than the value of the lien held by the first mortgage.
When trying to determine what the value of the first mortgage is, one must look at the principal balance, add any deliquency and also any escrow shortage. Provided the house or residence appraises at a value lower than this number, the second lien can be removed in a chapter 13 bankruptcy filing.
Thus, for a homeowner struggling to keep up with house payments, the removal of the second mortgage can provide a great deal of relief on the monthly budget.
To determine whether or not you will be able to do this, it is imperative that you speak with a qualified and experienced Bankruptcy Attorney. Call 858 499 8951 to schedule an appointment. The consultation is free.