Second Mortgage Debt Relief :: McCarthy Law PLC

Second Mortgage Debt Relief

Second Mortgage Debt Relief

When a homeowner is struggling with the costs of a mortgage, there are several different solutions to consider, including re-finance, modification, debt settlement, sale, short sale, and bankruptcy.


Refinancing refers to the replacement of your existing mortgage with a new mortgage under different terms, typically at a lower interest rate or for a longer term, both of which result in a reduced monthly payment amount. However, you oftentimes need a great credit score to qualify and the market also needs to be on your side. To learn more, contact a mortgage broker.


A loan modification is a process where the original terms of a mortgage are changed by agreement between the lender and borrower, often resulting in lower monthly payments. A bank is not required to modify a loan unless the homeowner qualifies under certain federal programs, which can be explored on the government’s website: However, homeowner’s should be forewarned that this is a burdensome process that involves significant production of financial documents, typically over extended periods of time.

Debt Settlement

Debt settlement is when an attorney negotiates for large reductions of a debt (principal & interest). After the mortgage has been settled, the lien is released from the property and the homeowner is no longer liable on the note. This solution is limited to mortgages or HELOCs underwater though, i.e. the property is worth less than what is owed on it. To learn more, contact a debt settlement attorney.

Short Sale

A short sale is when a homeowner sells the property for less than what is owed and the lender(s) agree to accept less than what is owed. The homeowner is completely released of liability after the sale and does not owe anything additional to the lenders. However, it is essential that a homeowner hire an attorney and a realtor to work together on a short sale. Realtors are not experienced in negotiating with lenders – attorneys are.


Sometimes a chapter 13 bankruptcy can be used to strip a second lien from a property. For more information, consult a bankruptcy attorney.

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