Maryland Bankruptcy Mortgage Lawyer

Facing Home Mortgage Foreclosure? Get Legal Advice

Bankruptcy is often motivated by the need to prevent or interrupt foreclosure of the mortgage on your home. To learn how you can benefit from our long experience with the solution of difficult mortgage problems in bankruptcy, contact a lawyer at any of the three Maryland offices of Steven E. Mirsky, LLC.

Call (866) 654-2003 or (301) 637-0412 to learn about your options for saving your home

Because home mortgages are secured claims in bankruptcy, the holder of your mortgage note gets additional protection. Your house continues to serve as collateral for the mortgage debt throughout the bankruptcy case. If falling property values threaten to put your equity underwater, the creditor can seek permission from the bankruptcy court to start mortgage foreclosure proceedings so that it can realize the value of its collateral position.

No matter how much or how little equity you have in your home, however, bankruptcy will always interrupt a mortgage foreclosure, and your mortgage lender won't be able to start a new foreclosure without the permission of the bankruptcy court.

If you have significant equity in your home, the fact that the property is worth more than the mortgage balance by itself protects the creditor, and the request to foreclose will most likely result in an agreement between you and the lender. If you have little or no equity in your home, the creditor can probably resume foreclosure proceedings through a motion for relief from the automatic stay, but the question becomes, why would it? Any shortfall between the mortgage balance and the sale price is dischargeable in bankruptcy, and your lender is stuck with the loss.

Steven Mirsky has more than 30 years of bankruptcy experience in Maryland

An experienced bankruptcy lawyer can help you make the most of your leverage in resolving home mortgage problems and preventing foreclosure. We can help you take advantage of a difficult real estate market in negotiating an arrangement with your lender, whether it involves a short sale of the property, cure of arrearages in a Chapter 13 plan, or any other approach that protects your interests while satisfying your mortgage creditor.

Our attorneys can also protect you from the risk of tax liability on the forgiveness of a deficiency debt, especially on home equity credit lines that are not covered by recent legislation that exempts mortgage debt forgiveness from taxation.

With offices in Rockville, Frederick and Laurel, the law firm of Steven E. Mirsky, LLC, is convenient for clients in Montgomery County, Prince Georges County and western Maryland. Contact us for a free consultation about resourceful bankruptcy solutions to difficult home mortgage foreclosure problems.