In a big victory for mortgage lenders and an even bigger loss for Oregonians struggling to carry two mortgages, the U.S. Supreme Court has just ruled that underwater homeowners can’t get rid of a second mortgage by filing for chapter 7 bankruptcy.
Where a home is worth less than the amount owed on the first mortgage, Oregon debtors can always file Chapter 13 to eliminate a wholly unsecured second mortgage, but Chapter 13 Bankruptcies always involve some form of payment back to creditors, admittedly often as little as $100 a month for a few years before a debtor can get a discharge. Of course for some Oregon homeowners, a $100 per month may as well be five million, as paying anything beyond the first mortgage means not eating.
If you have a second on your home and the property is worth less than the amount of your first mortgage, please contact us so that we can find a way to get rid of your second mortgage in Chapter 13 Bankruptcy
