Saturday, January 21, 2012
Bankruptcy Court for Rhode Island cancels second mortgage from client's house
When a person's house value drops very low, it is possible to remove one of the mortgages from the house in the bankruptcy process. The second mortgage or home equity loan becomes discharged and the balance owed is canceled out. Just last week my office successfully wiped out a second mortgage for a client in the amount of $158,000. This was accomplished in a Chapter 13 bankruptcy.