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The State of Florida had more foreclosures in 2012 than any other state in the U.S. With so many upside-down mortgages and homeowners struggling to make ends meet, mortgage lien stripping through bankruptcy is an option that can provide true financial relief to countless individuals. My name is Barbara Cusumano and I am a Gainesville bankruptcy attorney. Keep reading to learn more about how you can protect your home by filing for bankruptcy!
If you have an "upside-down" or "underwater" mortgage — meaning your home's current worth is lower than the value of your first mortgage — you can strip the lien from a second mortgage when you file for Chapter 13 bankruptcy. Remember, a lien is a form of security — a claim or hold on your possession or, in this case, your real property. The lien gives your creditor the legal right to seize the property if you are unable to repay your loans on time.
By "stripping the lien," that right is taken away. Your creditor no longer has any legal right to your property should you default on your loan. This changes a formerly secured debt — a loan with collateral — into a wholly unsecured debt. In a Chapter 13 bankruptcy, you typically only need to pay back part of your unsecured debts. In some cases, you may not need to pay anything at all. This means that filing for Chapter 13 bankruptcy could be a very good option if you are struggling with debt and have a second mortgage on your home.
In the 21 years that I have practiced law, it has been my honor to help thousands of men and women around the State of Florida achieve renewed financial stability and independence through legal debt relief options, including bankruptcy. I've helped my clients discharge a total of tens of millions of dollars in debt, and I may be able to help you, too! Don't hesitate to call my Florida bankruptcy law office today to hear more about how I can help you save your home, your assets, your family, and your future.