“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 …
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…
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…