Orlando Chapter 7 Bankruptcy and Second Mortgage Stripping

Orlando Chapter 7 Bankruptcy and Second Mortgage Stripping

Until now, an Orlando chapter 7 bankruptcy has not done much to help a homeowner with an unsecured, or “underwater,” second mortgage on their property.  (These mortgages are also commonly known as HELOCS, or Home Equity Lines of Credit.)  In an Orlando chapter 7 bankruptcy, the courts have refused to remove a second mortgage lien, even though the chapter 7 bankruptcy eliminates all mortgage debts.  Even after the chapter 7 bankruptcy is over, and the homeowner is granted a discharge of all debts, including mortgage debt, the  mortgage liens remain on the property until the lender is repaid.  (First mortgage liens can never be removed in a chapter 7 bankruptcy).        Continue Reading

Recent Articles

August 10, 2018

When do you need an Orlando bicycle accident attorney?

READ MORE
August 05, 2018

How Hits Hurt: Football and Traumatic Brain Injury

READ MORE
August 02, 2018

How To Deal With Your Doctor After A Car Accident in Orlando

READ MORE
BROWSE ALL OUR BLOGS