Multiple Mortgages

Bankruptcy can be an effective tool for dealing with debt from multiple mortgages on commercial property and personal residences. Filing bankruptcy will put an immediate stop to a foreclosure. If you have multiple mortgages, it may also allow you to make your payments more affordable. 

At the Orantes Law Firm, in Los Angeles, lawyer Giovanni Orantes is dedicated to helping commercial and residential property owners throughout Southern California obtain relief from mortgage debt. We offer a free initial consultation to look at the challenges you face and give you honest answers about your rights and options.

Relief From Mortgage Debt

If you have multiple mortgages on your home or commercial property, and you are underwater (in other words, you owe more than the property is worth), filing Chapter 13 bankruptcy may give you a way to reduce your payments to an affordable level.

Here are some examples:

• Suppose you have two mortgages on your home: a $500,000 first mortgage and a $ 200,000 second mortgage. Suppose the current market value is $450,000. In this case, you could strip the lien from the $ 200,000 second mortgage. That debt will become unsecured, and you may have to pay the lender only a small percentage of what you owe in a Chapter 13 payment plan.
• In commercial or rental property, you have even more options. Suppose you have two mortgages on a duplex: a $750,000 first mortgage and a $250,000 second mortgage. Suppose the current market value of your duplex is $700,000. In this case, you could strip the lien from the $250,000 second mortgage. You could also cram down the first mortgage to the current market value ($700,000) and reduce your interest rate to the current market rate.

These options are also available when you file Chapter 11 or Chapter 12 bankruptcy. If you have a multimillion-dollar home or multiple properties, Chapter 11 bankruptcy may provide you with the best chance of protecting your property. 

Contact Los Angeles Bankruptcy Attorney Giovanni Orantes

For more information about multiple mortgages and bankruptcy, call (213) 340-0534 or contact us by e-mail to schedule a free initial consultation. Se habla español.