Too Good To Be True? Nope!
Michael Primus is a bankruptcy attorney in Contra Costa County. Chapter 13 is a personal reorganization that can remove a 2nd mortgage (or Home Equity Line of Credit) from a home while allowing the owner to retain the home by paying only the monthly payments on the first mortgage. In order to remove a second mortgage in chapter 13 there are 3 major criteria:
- Value of the home must be less than the balance on the first mortgage,
- Owners’ regular income must be sufficient to pay the first mortgage as well as monthly living expenses (food, gas, etc.),
- Owner must be able to pay domestic support (alimony/child support) and most tax debt.
A common example is an 80-20 loan combination. This financing arrangement allowed a person to purchase a home using two separate loans: a first mortgage for 80% of the value of the home and second for 20%. In this case, if property values have declined and the borrower is struggling financially chapter 13 is an attractive option to remove the 2nd mortgage with little or nothing paid. Many homeowners in Antioch, Pittburg, Oakley and Brentwood will qualify. Chapter 13 can also reduce or eliminate credit card debt, medical debt and more.
Call now for a free in office consultation. Offices in Walnut Creek, Antioch and Hercules.
Law Office of Michael Primus