Second Mortgage Settlement Lawyer – One of the many millions of Americans who are struggling to make their mortgage payments, especially if their house is worth less than the amount of debt they still owe, will need help getting out of debt and avoiding foreclosure.
When it comes to second mortgage payments, you should be aware that you have choices accessible to you. In order to prevent default and foreclosure, second mortgage lenders are typically ready to accept lump-sum payments of much less than the entire amount owed. A mortgage settlement may be the best option for you, depending on your situation. If that happen, the option of hiring second mortgage settlement lawyer is the best option.
Your second mortgage debt can be reduced significantly with the expertise of a seasoned Southern California mortgage relief attorney. This includes interest and principle. Throughout Southern California, the second mortgage settlement attorneys at Rounds & Sutter have spent years helping homeowners decrease or eliminate their debt, safeguard their credit, and map out a road to financial security and freedom.
They Know Everything About Second Mortgages
The majority of people who buy a house do so with the help of a mortgage. Real estate purchases come with a mortgage, a loan that secures the property and can be foreclosed upon and sold to pay off the loan if a borrower defaults.
In order to finish home repair projects, pay off medical debts, acquire costly items, or otherwise pay off other obligations, many homeowners contemplate taking out a second loan secured by their property. The term “second mortgage” refers to a second loan that is secured by the property.
Renovations and other home modifications often necessitate a second mortgage to help homeowners boost their equity and the value of their house. Owners might find themselves in a situation of negative equity if the value of their house does not rise, as can be the case in the event of unanticipated market downturn (meaning they owe more than the market value of the home).
You may be able to find some relief if you have negative equity in your house or if you are struggling to pay off other obligations on top of your second mortgage with the aid of an experienced debt relief lawyer.
Settlement of Mortgages: What Exactly Is It?
The process of settling a second mortgage is quite similar to that of settling a credit card debt. If the borrower wants to get rid of their mortgage obligation, the lender will take a lower settlement sum than what is owed. Foreclosure is something that second mortgage lenders generally avoid doing. Negotiating a contract where the borrower pays back a portion of the loan amount would be preferable to them. Better if you have second mortgage settlement lawyer if you want to make this step easier.
Second Mortgage Settlement Lawyer Know How to Deal With Every Parties
The “junior lienholders” are those who possess second mortgages. Someone who possesses a loan that is “junior,” meaning “behind” another obligation, is known as a junior lienholder. Foreclosure earnings would go to the “senior” lienholder, the original mortgage lender, if a second mortgage lender foreclosed on your house and held a foreclosure sale.
After paying off your first mortgage, the lender that has the second loan will be entitled to the remainder. For this matter, you must consult everything with your second mortgage settlement lawyer.
The amount owed on a first mortgage sometimes surpasses the home’s worth for many borrowers who are having difficulty making their payments. Foreclosure and sale of the property would result in all of the proceeds going to the first lender, leaving the second mortgage holder with nothing to show for their efforts. That is why second mortgage settlement lawyer is needed.
The value of your property is less than the amount owed on your first mortgage, which puts you in a better position to bargain with your second mortgage lender for a better settlement. It is possible to persuade second mortgage lenders to accept a settlement in order to avoid a bankruptcies of the debtor.
An experienced second mortgage settlement lawyer may assess your financial situation and debts, as well as acquire an appraisal of your home’s current worth, to determine your negotiating power in debt settlement discussions.
It is possible to prevent foreclosure and erase your second mortgage by paying back only a small portion of the entire principle and interest. Get your finances back on track by paying off your second mortgage and catching up on your other debts, such as your first one.
They Have Several Solution You May Choose
Many options are available by the second mortgage settlement lawyer to homeowners who are struggling to keep up with their mortgage payments, including refinancing, debt settlement, selling, short-selling, and declaring bankruptcy.
Second Mortgage Settlement Lawyer Solution #1 – Re-Finance
Replacing your current mortgage with a new one with different terms, often at a lower interest rate or for a longer period, results in a lowered monthly payment amount through refinancing. Refinancing However, you may have to have a high credit score and the market be on your side to be eligible. Contact a mortgage broker for additional information.
Second Mortgage Settlement Lawyer Solution #2 – Modification
When a lender and a borrower come to an agreement on the conditions of a mortgage, they are able to cut the monthly payment. You may find out more about federal initiatives that can help you get a better deal on your mortgage by visiting the government’s website: makinghomeaffordable.gov. Owners should understand that this is a time-consuming procedure that necessitates the generation of substantial amounts of financial documentation, usually over a prolonged period.
Second Mortgage Settlement Lawyer Solution #3 – Debt Reduction or Payoff
Debt settlement is the practice of negotiating big debt reductions with the help of an attorney (principal & interest). When the mortgage is paid off, the property’s lien is removed, and the owner is no longer responsible for the debt. Underwater mortgages or HELOCs, i.e., those where the property’s value is less than the amount owing on the loan, are not eligible for this option. Consult with a debt settlement lawyer for further information.
Second Mortgage Settlement Lawyer Solution #4 – No-Value-Paid Purchase
Essentially, a short-sale occurs when a homeowner sells their property for less than what they owe and the lender(s) agree to take less than what they owe. After the sale, the homeowner is free of any further obligations to the lenders and is no longer liable for anything. A short sale requires the assistance of both a real estate agent and an attorney. Attorneys are better at dealing with lenders than real estate agents.