reverse mortgage Tag

24 Apr The Reverse Mortgage. What You Need To Know!

There is a familiar expression:  "The road to Hell is paved with good intentions!" I'd like to think that the individuals that came up with the concept of the reverse mortgage had good intentions.  The reality I see in my bankruptcy practice is elderly people, who are...

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14 Feb Chapter 13 Bankruptcy Time Bomb: Mortgage Modification

One of the major benefits of Chapter 13 Bankruptcyis the ability to avoid second mortgages that are not secured by any value in your home. By following standards outlined in the Bankruptcy Code, you can reclassify that loan on your home into the same category as credit cards or other ordinary bills and discharge them at the end of your Chapter 13 payment plan. This is called lien stripping. You cannot do this to a mortgage in a Chapter 7 case. However, if there is even a penny of value in the home that would go to a second mortgage when the property was sold, the loan cannot be valued as unsecured. That means it must be paid during the Chapter 13 case and it also survives the Chapter 13 as a lien on the property until it s paid off.
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