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Eliminate second mortgages and save your home in San Diego

One of the most rewarding aspects of my practice is helping struggling homeowners to keep their home and avoid foreclosure by using a popular but not widely known provision of the bankruptcy code to eliminate second mortgages.

Bankruptcy law does not eliminate or change the terms of the first mortgage if a debtor plans to stay in their home. But second mortgages are treated differently. They can be declared unsecured when the property value has fallen below how much is owed on the first mortgage, as is the case for millions of houses in San Diego that are now worth far less than 2-3 years ago.

In one recent case of mine, my client was able to hold on to her home by eliminating a $220,000 second mortgage. This will now allow her to possibly pursue a modification on her first mortgage and first mortgage lenders are more than happy to work with borrowers who have filed for bankruptcy.

Before walking away or short selling your home, talk to an experienced bankruptcy attorney to find out if bankruptcy will help you keep your home.

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