Can I Reduce My Mortgage Payments After My Modification Has Been Denied?

Banks and mortgage companies have not cooperated very often in out-of-court mortgage modifications. However, a Chapter 13 bankruptcy filing can give a homeowner a powerful tool in reducing their house payments. The best part is that the terms of the reduction are delivered to the mortgage lender, and a homeowner does not need permission or approval from their lender to get the payments reduced.
The concept is called “lien stripping.” Lien stripping remains perhaps the most reliable tool to modify a mortgage, but only under certain circumstances.
There are several critical elements necessary for a lien strip to be proper. First, the homeowner must have a first and second mortgage on their home. Second, the value of the home must be less than the principal owed on the first mortgage. Lastly, the homeowner must be eligible to file for Chapter 13.
In these circumstances, a homeowner can wipe away their second mortgage lien. The result is a reduction in the mortgage payments for the homeowner. If you are curious as to whether you are eligible, contact a bankruptcy attorney and determine your rights. If you are in Western North Carolina, I would be happy to speak with you about the specifics of your situation.