My house is underwater.

If you have more than one mortgage loan on your home and the house is underwater, then you may qualify to have one or more of your junior liens avoided, so that you do not need to pay them.

A property is considered underwater when the total value of all mortgage loans on the property is greater than the value of the property itself.  If the property value is less than the value of the first mortgage, then the junior mortgage loans, home equity lines of credit, and judicial liens are considered unsecured.  In most cases, these “wholly” unsecured junior liens can be avoided or stripped from the property through the federal bankruptcy court.

Our office has wiped out about $15,000,000 in junior mortgages for our clients. Of course, everyone’s situation is unique, which is why our office provides a free personal consultation with an attorney, so that we can analyze your specific circumstances and advise you of the best way to reduce your debts and save your property.

Learn more about house & real property issues.

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