Lose Your Second Mortgage For Good


Chances are, if you bought a home in the past 5 years and financed with an 80/20, where there was an 80% first mortgage and 20% second mortgage, that you can entirely “strip off” that second mortgage and other junior liens from your home!

It is not uncommon in the Kansas City market to see values that have dropped in excess of 20% in the past year alone. In many areas of the Country, value has dropped significantly more. When we pull property values to substantiate property value listed in the Bankruptcy Cases we file, we are generally looking at home values that generally existed in 2003 and 2004.

So that means that anyone that bought or refinanced real estate since 2003 may be able to have the second mortgage removed! NO MORE PAYMENTS on that mortgage ever again and the LIEN IS REMOVED! GOODBYE HELOCS!!!!

Imagine that. File chapter 13 Bankruptcy to eliminate your credit card debt, reduce your car payments, cure the arrears on the first mortgage, and now entirely remove your second mortgage! It gets even better! What if in 5 years your house now bounced back with the value increasing back to where it previously was or even more? That’s right, ALL THAT EQUITY IS YOURS! That $50,000 second lien no longer exists and the $50,000 in equity is yours!

If the values don’t improve, at least you are not paying anymore than the house is worth.

Many of the Chapter 13 cases we are filing that have real estate are now resulting in lien avoidance actions. Under no circumstance should you continue to pay your second mortgage if the value of your house is equal to or less than the first mortgage. It’s an easy test to take to see if you qualify:

1) Is the value of your house less than or equal to the amount you owe on the first mortgage?
2) Is your total secured debt (mortgages and auto liens) less than $1,010,650.00?
3) Is the total of all your other unsecured debt less than $336,900.00?
4) Do you have income?

If you answered YES to all four, you can REMOVE YOUR JUNIOR LIEN! The mortgagee cannot do anything about it because of Federal Laws. They can only try to dispute the value. However, if there is a good analysis of the value, such as a professional Competitive Market Analysis prepared by the licensed Realtor, there really isn’t much to argue about.

So if you are struggling with your home payments, and possibly other debt as well, be sure to give us a call at 913-912-7070 or email Conrad@mlfks.com. In a free 30 Minute consultation we’ll examine your situation and will be able to advise you as to your best options.

However, you should not delay. Every month you wait the deficiency grows larger and the more money you’re pouring into a Second Mortgage that could be eliminated. Now is the time to plan ahead, save that home, eliminate junior mortgages, and create lots of equity for the future and get the fresh start you deserve!