Eliminate 2nd mortgages in chapter 13 bankruptcy
Many homeowners in East County owe hundreds of thousands of dollars more on their homes than they are worth. If these homeowners do not find a way to reduce the principal balance, they may never have any equity in their homes. For those homeowners who have a 2nd or 3rd mortgage on their home a Chapter 13 allows the homeowner to eliminate the 2nd or 3rd mortgage. For example, if your house is worth $200,000 and you have two loans on it: a first mortgage for $300,000 and a second mortgage for $100,000, in a Chapter 13 you can eliminate the second mortgage, which means you do not have to pay it anymore.