Michigan Foreclosure Law and Secondary Mortgages and 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.

Stop the Home Foreclosure and Remove Your Second Mortgage or Home Equity Loan to Restructure Your Budget

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 some or most of your unsecured debts, such as credit card bills, medical bills, personal loans, prior loan deficiencies, judgments, etc.

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 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 you that all debts are handled and 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 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 Southfield, Dearborn, Flint and Warren, Michigan. Please call us toll free at 866-261-8282 or Click Here to schedule a consultation right now.