A home mortgage gives a lender a legal claim to your home. This means that the lender can foreclose your home if you fail to uphold the terms of the agreement through required payments. With offices in Cartersville, Rome, and Dalton, Bournakis and Mitchell, P.C. have helped hundreds of clients manage their mortgage debts.
Call (706) 350-6075 to speak with a Northwest Georgia bankruptcy attorney. We have offices in Cartersville, Dalton, and Rome.
When people want more funds to pay for home improvement projects or business ventures, they often will take out additional mortgages on their home. People may also take our additional mortgage loans due to excessive financial burdens. When you take more than one mortgage out on your home, the order and name of each loan is important both for your records and for the lenders, who get paid according to the seniority of their loan. At Bournakis and Mitchell, P.C., our experienced Northwest Georgia bankruptcy attorneys treat each client with dignity and respect and can help you understand the specific facts of your situation.
If your home is foreclosed and sold in either private sale or auction, the proceeds will go towards paying off the remaining mortgages. First loans are paid off first, and all subsequent loans are paid off according to rank. Subsequent mortgages, however, may not even be paid off if all the money goes towards the first loan, so these lenders have less incentive to seek foreclosure.
Determining if your loan is secured or unsecured is an important part of managing your mortgage debt. If your loan is secured, lenders will be more likely to pursue foreclosure because they know they can get paid. If your loan is unsecured, however, lenders will be less likely to pursue foreclosure and may instead file a lawsuit to seek a money judgment from you. This could involve wage garnishment or taking money directly out of your bank account in order to pay off the loans.
In order to determine whether your loans are secured or not, you must first determine the current value of your home, and a real estate broker can help you understand your home’s value. Then, simply subtract the remaining amount of your first mortgage from the current value of your home. If your home is worth more than the remaining mortgage, your loan is secured, and if it is not, then your loan is unsecured.
With a dedicated and meticulous Northwest Georgia bankruptcy lawyers, you can understand the status of your loans and explore your options for seeking a beneficial solution.
Start living debt-free today. Call us at (706) 350-6075 for a complimentary consultation.