Understanding Underwater Loans
A person considering bankruptcy may encounter a number of confusing or unfamiliar legal terms and concepts. Given the recent downturn in the economy, especially in the housing market, the phrase “underwater loan” is frequently utilized when referring to unsatisfactory mortgage conditions. This situation arises when someone’s property drops in value so that it is less than what the mortgage is worth.
If you have questions about bankruptcy, we may be able to address these concerns before you commit to filing for bankruptcy. For more information about our full range of legal services, contact Florida bankruptcy lawyer Ryan J. Really, Attorney at Law, PLLC, today by calling (239) 237-0675.
How Bankruptcy Affects Underwater Loans
When a person files for bankruptcy, he or she may be looking for a way to address his or her underwater loans. In terms of underwater mortgages, bankruptcy offers the following options:
- Using an automatic stay to negotiate for better terms on the loan and protect your home from foreclosure
- Using the Chapter 13 repayment plan to work through the value of an underwater loan
- Using the Chapter 13 cramdown process to reduce the value of the loan owed
If you are underwater on your mortgage or are facing other debt difficulties, you should talk to our Florida bankruptcy attorneys about your legal rights and options.
Contact Us
Bankruptcy can be a frustrating process if you do not have a legal advisor by your side. However, our experienced legal team may be able to help you begin the process of filing and assist you through your case. For a free consultation regarding your bankruptcy case, contact Florida bankruptcy attorney Ryan J. Really, Attorney at Law, PLLC, at (239) 237-0675 today.
