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Welcome to JustAnswer,So sorry to hear of this dilemma. If my answer is not clear to you or does not fully answer your question, please ask me for clarification by using the reply button.A chapter 13 bankruptcy may assist you if you have junior liens since a chapter 13 bankruptcy may be used to avoid the junior lien in a process known as lien strippingChapter 13 bankruptcy can strip off a junior mortgages if the first mortgage equals or exceeds the value of the property.
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What is the current market value of the house next to you?
Do you also have other debts that need to be discharged - such as credit card debt?
With a Chapter 13 filing and completion:1) With your home, the balance of the second mortgage ($8K) can be stripped. If you move out of your home, and rent it instead, you can also have the unsecured portion (the $13K difference between the market value and the balance of the mortgage) of the first mortgage stripped.2) With the worst rental property, the difference between the market value ($35K) and the balance of the mortgage ($58K) can be stripped, leaving a mortgage balance of $23K.3) Since your unsecured debt amounts to $11,300, if you can pay that amount over a 5-year period ($188 per month), you will be able to keep the 4 other rental properties with equity.
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