The economic downturn that resulted in the foreclosure crisis has led to an unprecedented crisis in the housing market. Banks handed loans to consumers without regard for their ability to repay and then bundled worthless securities and sold them on Wall Street as “investments.”
By the time it all came home to roost, bankers had their million-dollar bonuses and homeowners and taxpayers were left holding the bag.
Colorado Springs Bankruptcy Attorney Stephen H. Swift is committed to fighting for the rights of homeowners dealing with foreclosure, short sale, mortgage-loan modification or bad real estate debt.
Mortgage Debt and Bankruptcy in Colorado Springs
Filing for bankruptcy in Colorado Springs can assist homeowners in dealing with debt stemming from a first, second, third or subsequent mortgage. A Chapter 7 Bankruptcy will result in the forfeiture of the home and eraser of all mortgage-related debt. It will also protect a homeowner from a deficiency judgment or earned-income judgment that may result from debt forgiveness in the eyes of the IRS.
For those looking to keep their homes, it may be possible to strip junior mortgages via Chapter 13 bankruptcy filing.
Junior Mortgages and Chapter 13 Bankruptcy in Colorado Springs
Since the economic downturn, the number of homeowners who owe more on their home than it’s worth has reached unprecedented proportions. Just another tragic consequence of Wall Street greed is that millions of homeowners who played by the rules have been forced to pay the consequences. Housing prices have plummeted, leaving them upside down on their mortgage.
In cases where the amount owed on a first mortgage exceeds the value of a home, a Chapter 13 bankruptcy filing can eliminate second or subsequent mortgages upon completion of a plan.
This may be an option worth considering for some homeowners. Particularly long-time residents. If removing second and subsequent mortgages leaves a homeowner with a manageable debt level on a home they wish to keep, stripping junior mortgages may be the wisest course of action.
An experienced Colorado Springs bankruptcy lawyer should always be consulted. Chapter 13 bankruptcy filings are more complex than a Chapter 7 liquidation. Never is that more true than when dealing with banks and home mortgages. You cannot count on banks to deal honestly, or even ethically. And you must be assured that you are getting the relief you are entitled to through a bankruptcy filing.
When it comes to dealing with bad mortgage debt in Colorado, the homeowner has a wide variety of options. Consulting with experienced legal counsel early and often is your best bet when it comes to making the most of a bankruptcy filing and winning the fresh start you and your family deserve.
A Colorado Springs bankruptcy lawyer can assist you in determining the best course of action for your individual case. The Law Offices of Stephen H. Swift is here to aid consumers in the bankruptcy process.Serving clients in in Colorado Springs, Pueblo, Denver and the surrounding area.
Colorado Springs bankruptcy – 719.520.0164 – legal consultation
