Second Mortgage Removal

If you own a home and you have more than one mortgage against your home, you may be able to remove your second mortgage and erase it in your bankruptcy case. In order to be eligible to remove your second mortgage loan, you meet all of the following requirements.

You must file a Chapter 13 bankruptcy case (you can not remove a second mortgage loan in a Chapter 7 bankruptcy case)

At the time you file your Chapter 13 bankruptcy case, your home must be worth less than what you owe on your first mortgage at the time your bankruptcy case is filed. In order to establish the value of your home, you may be required to get a current appraisal. Your second mortgage company may obtain its own appraisal and contest your value, in which case we will go before a judge who will look at both appraisals and determine the value of your house.

You must successfully complete your Chapter 13 bankruptcy case.