Michigan Foreclosure Law on Second Mortgages & Home Equity Loans
If you are facing a home foreclosure, a contributing factor may have been a secondary mortgage or home equity loan. When the housing market was appreciating, many homeowners took advantage of a home equity line of credit to make improvements to their home or pay down other bills. Or maybe a second mortgage or an 80/20 home loan was necessary in order to make the initial home purchase viable based on the financing options. In any event, most homeowners no longer have enough equity in their homes to satisfy both a primary and secondary mortgage home loan.
Reductions in family income and job stability have put a lot of Michigan families at the brink of, or in, a home foreclosure situation. What was once a working mortgage situation and budget plan is no longer viable in today’s financial reality. If you are facing a Michigan home foreclosure and have a second mortgage or home equity loan, we have several different options.
Call us today at 866-261-8282 for a free consultation with one of our licensed attorneys. When we meet, we will discuss your options to:
- Legally stop your home foreclosure and other creditor actions such as vehicle repossession, judgments and garnishments.
- Remove your second mortgage or home equity loan to lower your total mortgage obligation
- Consolidate and likely eliminate a portion of other bills like credit cards, medical bills, personal loans, etc
- Create a balanced budget and improved credit
We are a Michigan-based law firm with offices in Detroit, Ann Arbor, Dearborn, Southfield, Flint or Warren. We look forward to discussing your options with you.
Stop the Home Foreclosure and Remove Your Second Mortgage or Home Equity Loan to Reduce Your Mortgage Debt
- Through the use of a Chapter 13 reorganization, we can legally stop the home foreclosure before the sale occurs. You are guaranteed court protection from the foreclosure, your mortgage company and your other creditors.
- The Chapter 13 can also legally remove a second mortgage and/or home equity loan, therefore reducing your overall monthly mortgage obligation. This process is called “lien stripping”.
- Similarly, we will most likely reduce your monthly budget outlay by consolidating and reducing your unsecured debts, such as credit card bills, medical bills, personal loans, prior loan deficiencies, judgments, etc.
- By focusing on debt reduction throughout the course of the program, your debt-to-income ratio will improve. This factor along with the plan’s structured consistent and timely payments to your creditors will bolster your credit score. These two factors along influence 65% of your credit score according to FICO.
Surrender Your Home and Eliminate Resulting Debt Obligation
- If you are no longer in the position to maintain payments on your home, even after reducing your mortgage and other debts, you are able to surrender your property back to the bank through the process of filing a Chapter 7 or Chapter 13 Bankruptcy.
- A Bankruptcy filing will ensure that all debts are legally eliminated or discharged so that you do not receive a loan deficiency judgment in the future.
- If you qualify to file a Chapter 7 Bankruptcy you will totally eliminate any unsecured debt obligations including any liabilities with the home you are surrendering.
Call Acclaim Legal Services for Free, Expert Legal Advice
Our Michigan based law firm specializes in debt relief through the Chapter 7 or Chapter 13 Debt consolidation. We offer a free assessment of your finances to determine the best course of action. You will meet with a highly qualified, licensed attorney who will review your budget and provide a step-by-step action plan to resolve your debts and make a fresh financial start. We are here to help.
We offer free in-office or phone consultations to review your personal circumstances, analyze your situation and advise you on the best course of action. We specialize in bankruptcy law, debt resolution, foreclosure prevention and credit repair. We have offices in Detroit, Southfield, Dearborn, Flint, Ann Arbor and Warren, Michigan. Please call us toll free at 866-261-8282 or schedule a consultation right now.