A Guide to Working with a Second Mortgage Settlement Lawyer
If you require a second mortgage settlement lawyer in Georgia, you can count on us to be there for you through every step of the process.
What Does a Second Mortgage Settlement Attorney do?
When a person or family is dealing with a dire financial situation, getting a second mortgage on real estate might be a viable option for some people.
Second mortgages are meant to give you a little more cash on hand by borrowing against the equity in your home.
Unfortunately, depending on the expense of the payments and other debts, sometimes, second mortgages are not the answer they seemed to be. In certain circumstances, the borrower may be unable to stay up-to-date on their payments and face bankruptcy or foreclosure proceedings.
If this happens to you, a debt settlement attorney may be able to assist you in regaining your financial freedom. A second mortgage settlement attorney assists in negotiating loan modification and the repayment of a second mortgage.
How Can a Debt Settlement Lawyer Help?
A second mortgage settlement attorney has to be an experienced negotiator, able to deal with the bank and the borrower as well as both parties’ lawyers. They need to know all the ins and outs of foreclosure law, as well as all the intricacies of a loan agreement.
They also have to be able to provide borrowers with accurate information about their options so they can make informed decisions about their mortgage debt and financial future.
A trustworthy law firm like Bournakis & Mitchell Law can help – call today for a free consultation.
What is a Second Mortgage?
A first mortgage is a loan that a homeowner takes out when they buy their house. A second mortgage is a type of loan that borrows the equity that you have in your home.
Like your first, it requires repayment on a specified schedule. You will also have to pay interest on the amount, but the interest rate can often be lower than private loans or credit cards.
Does a Mortgage Affect the Market Value?
Many people wonder what the impact of getting a second mortgage will be. Homeowners who have a second mortgage are likely to have questions about what this means for their home value. Generally, the full amount of the mortgage must be paid before the property can be put on the market. Otherwise, it doesn’t affect home values at all.
To be eligible for a second mortgage, the borrower must provide proof of the following:
Credit report score
Income
Sufficient equity in their home
For additional information on the fair market value of your property and the mortgage process, you can contact your first mortgage lender or a law firm like Bournakis & Mitchell Law.
Is There a Statute of Limitations on Second Mortgage Debt?
A statute of limitations is a law that sets the maximum time period after an event that legal proceedings may be initiated. The general idea is to ensure the timely pursuit of valid claims.
The statute of limitations for a home equity line of credit (HELOC) or second mortgage loan is typically either six or twenty years from when the note was signed and recorded with the county recorder’s office.
If you have questions on the terms of your mortgage debt, an attorney can review your documents and help you protect yourself against predatory lenders.
What Options are Available to Borrowers?
The options available to borrowers who are unable to make their monthly payments include:
Foreclose sale
Long-term forbearance agreements
Reduced interest rate
Refinancing
Selling the property
Short-term forbearance agreements
Contact a reputable debt settlement lawyer for additional information, advice, and advocacy.
What is a 2nd Mortgage Settlement?
A 2nd mortgage settlement is a process where the lender agrees to a lower sum of money in order to settle the debt. The borrower may have taken out a second mortgage to cover an emergency or other financial need.
The borrower may also have been unable to make their monthly payments on the first mortgage and decided that they would rather give up their home than continue with the high monthly payments.
In this case, the lender may agree to take less money in order for them not to lose their investment and get some of their money back.
This process can also be used by homeowners who are underwater on their 1st mortgage and are looking for ways to reduce monthly payments so that they can afford them better. A Georgia bankruptcy attorney can help you understand your options.
Can a 2nd Mortgage Be Discharged?
There are two main types of mortgages: a first mortgage and a second mortgage.
A first mortgage is secured by real property and is typically used as the primary residence or for investment properties.
A second mortgage is not secured by real property but can be used for any purpose. The borrower has the option of using their home equity as collateral for a second loan, which may be an attractive choice if they have little or no other collateral available to them.
It is possible to get a 2nd mortgage lien discharged in a Chapter 13 bankruptcy proceeding without paying toward it if Chapter 13 follows a Chapter 7 discharge.
How to Get Rid of a Second Mortgage
The second mortgage becomes a primary mortgage when the first is paid off. The second mortgage is typically cheaper than the first because it has a lower interest rate.
The most common way to get rid of a second mortgage, besides paying it off, is by refinancing it with another type of loan.
It may be possible to refinance your second mortgage into an adjustable-rate or fixed-rate home equity line of credit, which would allow you to pay off your debt over time without incurring any additional charges.
Should You Hire a Mortgage Settlement Lawyer?
Mortgage settlement lawyers like Bournakis & Mitchell can potentially help you save money and avoid creditor harassment by negotiating with mortgage lenders to get a lower interest rate, lower monthly payments, or even get you out of your home loan, depending on the circumstances.
There are many benefits to hiring an experienced debt settlement attorney. If you have been struggling with your mortgage payments and are unable to afford the monthly payment, then it is time to speak with a debt settlement attorney. They will help negotiate for you and work on your behalf so that you can move forward with as little financial damage as possible.
