Jupiter Lien Stripping Lawyer
While the economy has bounced back after the housing collapse of the 2000s and the subsequent market crash, many people in Jupiter and throughout South Florida are still struggling with mortgage payments that exceed the value of their homes. If you owe more than your home is now worth, a Jupiter lien stripping lawyer can help provide financial relief for your situation. The law offices of Nowack & Olson are open to you today, and our Jupiter lien stripping lawyers are ready to help you cast aside debts and get the fresh start that you deserve.
How Bankruptcy Can Help Those Who are Upside Down on their Homes
The housing market is still down, and it may not fully recover from the collapse until 2025, a new report found, according to CNBC. Moreover, while South Florida’s housing market has made some gains, though not as big as many parts in the country such as Denver, Seattle, or San Francisco, income growth has stagnated. Waiting for 2025 to come around or for income to suddenly boom is too long for most people to wait, and whether or not the housing market does bounce back is a very big if. For a solution that works today, an attorney can help you file for Chapter 7 or Chapter 13 bankruptcy, which can erase liens on your property and second mortgages.
What is a Lien?
A lien is a lender’s right to ownership of your property until your debt is paid, and many people have multiple liens and mortgages on their house or condominium. This debt is secured, meaning that if you fail to pay, the lender can confiscate your home. During Chapter 13 bankruptcy, a second or third mortgage can be turned into an unsecured debt, and the lien is stripped. What does this mean for you? It means that by filing for bankruptcy, you may be able to expel a second or third mortgage off your house or HOA so that the debt becomes unsecured, and this means that you will not have to pay back all of your dues and back assessments. Once your second mortgage becomes an unsecured debt and the lien is stripped, you will be given a timeline to pay back a certain amount of your mortgage, then the rest will be discharged once your payment plan is up. Unfortunately, Florida no longer allows lien stripping under Chapter 7 bankruptcy, according to the Florida Bar Journal, after a Supreme Court ruling in 2015.
Qualifying for Lien Stripping: Junior and Senior Loans
In order to qualify for lien stripping, the senior loan must be greater than your home’s fair market value. As such, if your home is worth $400,000, your senior loan is $400,000, and your junior loan is $100,000, you would be able to strip that second junior loan or mortgage.
Contact a Jupiter Lien Stripping Lawyer Today
If you are upside down on your home, meaning that the sum of your mortgages is more than what your home is worth, you may be able to benefit by filing for Chapter 13 bankruptcy and stripping the junior lien on your home. We urge you to contact the Jupiter lien stripping attorneys of Nowack & Olson today for more information.