“Strip” Your Second Mortgage in Utah

“Stripping” off a second mortgage helps your cash flow, saves many thousands of dollars, and improves your home’s equity position.

  In a blog post last week we listed 10 ways Chapter 13 helps you keep your home. Here’s the second one of those:

2. Stripping Second or Third Mortgage

Under Chapter 7 you simply have to pay any second (and third) mortgages on your home or lose the home. However, Chapter 13 gives you the possibility of “stripping” that junior mortgage lien off your home’s title. This could potentially save you hundreds of dollars monthly. You could also end up …

Keep Your Utah Home through Chapter 13

If you need more time to catch up on your unpaid mortgage payments, Chapter 13 provides that better than Chapter 7.

  Filing either a Chapter 7 “straight bankruptcy” case or a Chapter 13 “adjustment of debts” one stops a pending home foreclosure. And they can both prevent one from begin started. Assuming you’re behind on your mortgage and want to keep your home, whether you should file under Chapter 7 or Chapter 13 depends on how far behind you are and how much help you need in catching up.

Protection through the “Automatic Stay”

Filing either a Chapter 7…

Keep Your Utah Home in Chapter 7

You can usually retain your home in a Chapter 7 case if you are current (or not too far behind) on your mortgage payments.

Whether you can keep your home when filing a Chapter 7 “straight bankruptcy” mostly depends on two questions: 1) Are you current or close to current on your mortgage and other debts against your home, and 2) Is the equity in your home protected by the applicable homestead exemption? Today we focus on your mortgage. Upcoming blog posts will hit other possible kinds of liens against your home, and then the homestead exemption.

Chapter 7 in

A Chapter 13 Fresh Start on Your Home

The very best fresh start for your Utah home can come from adjusting your mortgage and other home-related debts under Chapter 13.   Our last two blog posts have been about two options for when you need help making mortgage payments: a mortgage modification and a forbearance agreement. In a nutshell, a mortgage modification reduces the monthly mortgage payments through a permanent restructuring of one or more of the terms of the mortgage. A reduction in the principal amount of the mortgage debt is seldom included. So while modification can help in the short-term–if you’re fortunate enough to meet the…

A Forbearance Agreement Fresh Start for Your Home

Whether you’re about to fall behind on your Utah mortgage or have already done so, a forbearance agreement avoids foreclosure while you catch up.   Quick Definition A forbearance agreement gives you short-term relief to deal with a temporary period of financial hardship. Your mortgage lender agrees, either in advance or after the fact, to accept a period of reduced or suspended monthly payments in return for your agreement to return to full monthly payments and catch up on the missed payments within a certain length of time. The lender agrees to not foreclose—to “forbear” from foreclosing—as long as you make…

Chapter 7 vs. Chapter 13–Second (or Third) Mortgage Strip

Stripping a mortgage from the title to your home could save you a tremendous amount of money.   Two blog posts ago our topic was getting rid of judgment liens, which can be done under either Chapter 7 “straight bankruptcy” or 13 “adjustment of debts.” So if you have a judgment lien (or two) on your home’s title, that will not push you towards one Chapter or the other. But stripping a second mortgage can only be done through Chapter 13. Because stripping a mortgage from your home’s title can save you so much money, it is often the major reason…

Mistakes to Avoid in Utah–Do Not Sell Your Home until Stripping the Second Mortgage

Chapter 13 “adjustment of debts” could save you a tremendous amount of money with a second (or third) mortgage strip.   If you have serious financial pressures inducing you to sell your home, is it partly because of your second (or third) mortgage? Would you it help if you did not have to make that payment anymore? Would you be able to keep your home, maybe even permanently, if you could stop paying that second or third mortgage (or both) and also get relief on your other debts? If your home is worth no more than what you owe on your…

Making Sense of Bankruptcy in Utah: Choosing between Chapter 7 and Chapter 13 to Save Your Home

Behind on your Utah home mortgage? Let’s look at the benefits of a Chapter 13 vs. Chapter 7 plan.   Here’s the sentence that we’re explaining in today’s blog post:

If your home is threatened by foreclosure, Chapter 7 usually buys you relatively little time but maybe enough if you 1) can catch up on the mortgage arrearage after writing off your other debts, 2) can qualify for a mortgage modification, or 3) have decided to leave; otherwise Chapter 13 can usually buy you much more time and give other big advantages.

The filing of either kind…

Making Sense of Utah Bankruptcy: Qualifying for a Second (or Third) Mortgage “Strip”

You can strip a junior mortgage from the title to your Utah home if the home is not worth enough to have any of its equity covering that mortgage.   In our last blog post we explained the huge benefits of the Chapter 13 mortgage strip through the following sentence:

If you qualify for removing (stripping) your second or third mortgage from your home’s title, you would not have to pay that mortgage’s monthly payments, and you’d get much closer to building equity in your home but only at the successful completion of your case.

To get these benefits…

Making Sense of Utah Bankruptcy: Catch up on your Home Mortgage Arrearage

A Chapter 13 “adjustment of debts” gives you many tools to save your Utah home, starting with giving lots of time to catch up on your mortgage.   In this “Making Sense” series, we’re helping you understand bankruptcy by explaining each important concept through a single explanatory sentence. Today’s sentence: Filing a Chapter 13 case stops or prevents a foreclosure and then gives you as much as 5 years to cure a mortgage arrearage as long as you follow the rules. The word and phrases in bold are each explained in the following sections. The Chapter 13 “Adjustment of Debts”