Look at this article in the San Diego Union Tribune this morning. The link is http://www.signonsandiego.com/news/2010/nov/08/homeowners-sought-help-but-didnt-get-it/?Watchdog Sure looks like another example of a loan modification scam. Ok, so I don't have all of the intimate facts and I may be wrong. But read the article and come to your own conclusion. I doubt I am wrong. These con-artists really disgust me. Clearly they are preying on desperate people. I still don't get how they can sleep at night. Personally, If I were them, i'd be scared. Desperate people can do desperate things. When you start messing with someone's lives, people can snap and do crazy things.
So anyway, how is this related to bankruptcy. Well, a Chapter 13 can help a homeowner turn their 2nd mortgage into an unsecured debt. Once it is an unsecured debt, it can be treated the same as other unsecured debt (like credit cards). A Chapter 13 plan may allow the debtor to compromise the unsecured debt and pay pennies on the dollar. At the end of the plan (which lasts 3 to 5 years) the 2nd mortgage is gone with all other unsecured debt. And hopefully the homeowner has an equity position in the property.
Want to learn more? Call me (Richard Chang) at 619-233-6300 or see my website. www.thebklawyers.com
