As a bankruptcy lawyer in Walnut Creek, Sacramento and Fairfield I talk to clients every day about the legal options and limitations bankruptcy offers to people in financial hardship. The number one reason why the most of my clients are doing bankruptcy is that their mortgage payment went up.
The Lethal Mortgage Spiral
A lot of my clients had teaser rates. They used these mortgages to afford their home. During the last two years these sub-prime mortgages have hiked upwards in an unpredictable manner taking my clients by surprise.
First the starting interest rates were very low and then either gradually or abruptly they hiked upwards to 8% and more. Banks have proven to be little help in negotiating lower mortgage payments. Attorneys have had more success getting mortgage lenders to agree to modify these loans.
" Stripping" the Second Mortgage
Can you get rid of your second mortgage ?
In a Chapter 13 Bankruptcy the bankruptcy judge can remove the second mortgage to lower the debt amount of the home owner. The rules are complicated. Only an experienced attorney familiar with Sacramento bankruptcy lawyer rules or Contra Costa bankruptcy laywer rules can force the lender to remove the second lien from the house.
Contra Costa will go through tougher times in Foreclosure
Working as a foreclosure lawyer in the East Bay I witness the worsening foreclosure crisis. It is moving west from Sacramento to the cities of Antioch, Pittsburgh, Concord, Martinez and even Walnut Creek. I help many of my clients to avoid bankruptcy by getting the mortgage lender to agree to lower their interest rate, stretch out the loan and forgive part of the principal balance of the loan.
Lenders negotiate with bankruptcy lawyers. They know a lot is at stake for them.
Using the possibility of bankruptcy is a powerful tool that has generated many successful results.
For a detailed description of foreclosure prevention and bankruptcy tools check out our website at www.rinnelaw.com
As a Sacramento and Walnut Creek bankruptcy lawyer I know the local bankruptcy rules. I also work out of my office in Fairfield where I live with my family. Our offices are at: 1104 Corporate Way, Sacramento, CA 95831 at 1990 North California Blvd. 8th Floor, Walnut Creek CA 94596 and in Fairfield at 1652 West Texas St. 94533. Call us at: 1800 303 2964
