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 Second Mortgage Deficiency Options

When home values kept climbing, many people were able to take out a HELOC (home equity line of credit) or second mortgages to help pay for other expenses creating a second mortgage deficiency. However, when the housing market later collapsed and foreclosures increased, there often was not enough value left in a home to pay the first mortgage let alone the HELOC or 2nd mortgage. So what would happen? The bank could then sue the homeowner for the amount of the now-unsecured HELOC debt, as there is no security left to cover the debt. This has happened to many people in California with lenders suing for the full amount still owed.

What can you do to defend against a HELOC lawsuit or second mortgage debt collection?

A California attorney negotiated debt settlement is a great solution for many people.  This mortgage deficiency debt process involves negotiating for large reductions in the principal and interest allowing us to settle the debt permanently for a fraction of the balance. As example, some of the benefits of working with our mortgage debt settlement firm are:

  • We regularly negotiate with most major mortgage lenders and have likely dealt with your bank before.
  • Find out your options with the free in-person debt analysis.
  • Avoid filing bankruptcy and move on without the full mortgage debt.

The next action you take is very important. Talk to an experienced lawyer so that you know the facts about dealing with a HELOC or second mortgage debt.  It is easy to feel pressured when the phone keeps ringing from the collectors and the letters keep coming but you are not alone.  Our law firm is a no-pressure zone where you can sort through the alternatives and decide calmly what action to take next. Contact Us for an appointment.

To learn more about our mortgage debt settlement process and how we can reduce a second mortgage deficiency, view our video: