Jim and Susan own and operate a small medical supply business in Dallas, Texas. In 2008, they purchased a $200,000 home using an 80/20 mortgage with an adjustable interest rate. Four years later, the value of their house has dropped to $150,000, their monthly payment has gone up, and their income has gone down. They are unable to make their mortgage payment. They have been unable to obtain a refinance or a loan modification, and now the mortgage company is threatening to foreclose.
Does this situation seem familiar? An experienced bankruptcy lawyer may be able to help.
The professionals at Henley and Henley can file a Chapter 13 bankruptcy which will immediately stop the foreclosure process, even if a sale has been scheduled and even if that sale is tomorrow. Bankruptcy provides instant peace of mind for our clients, a service we are happy to provide. The mortgage company cannot even think about foreclosure for up to five years.
Many people are under the misconception that bankruptcy is just an emergency stopgap that will delay the inevitable foreclosure by a few months try this. At Henley and Henley we know that bankruptcy more than just a Band-Aid. Bankruptcy can help a homeowner in the long term as well.
Jim and Susan’s home value has dropped so low that the second mortgage may be eligible for a strip down. Basically, the second mortgage has become an unsecured debt which can be discharged in bankruptcy. And there is more good news. If they meet certain qualifications, the balance due on the first mortgage may be reduced to match the current market value of their home. The term for repayment may even be extended. So not only did one of their mortgage payments disappear, the other payment may be substantially lower.
To see if you may qualify for these exciting programs, and to learn more details, call one of the bankruptcy lawyers at Henley and Henley PC to schedule your free consultation.