In not too distant past, when the economy was booming and real estate values were sky high, a lot of people took out second mortgages as home equity lines of credit on their homes. Since then, the economy has taken a major beating and most homes lost substantial value, thus placing many homes upside down in terms of what the home is worth vs. what is owed on it. For many, the value of their home does not exceed the balance on their first mortgage, and the home value does not reach at all to the second mortgage.
Now, there may be a solution to this problem. Through Chapter 13, people can get rid of their second mortgage at a great discount, often for as little as five or ten cents on the dollar. So, for example, if you have a second mortgage on which you owe $50,000.00, Chapter 13 may allow you to pay as little as $5,000.00 or even $2,500.00 total, over the course of up to 5 years, and wipe out the rest of your liability on the second mortgage. This could be a major benefit for homeowners and is worth looking into. For more information contact us at (708) 974-0000 to find out how we can help you reduce your mortgage debt and keep your home. Convenient locations in Chicago (Jefferson Park), Oak Brook and Palos Hills.