• Our Guarantee to Our Clients

    We promise to represent your best interests and keep you fully informed.

    Read Our Guarantee
  • Bankruptcy eBook

    Get a FREE eBook to become more familiar with the bankruptcy process.

    Download It Here
  • Our Video Center

    Click here to access a list of our firm's videos.

    Get More Information
  • When You're Ready To Talk

    We're ready to listen. Contact us to receive a free initial consultation.

    Request a Consultation

Will a Foreclosure Get Rid of My Debt?

Most people struggle to pay all of their bills. They live paycheck to paycheck, some with the help of their credit card. Though it is awful to lose a home, there might also be some relief. You are going to have less debt to find ways to pay off.

Many wonder about other debts. They wonder what debts a foreclosure will get rid of. What does it really do?

Mortgage & Refinancing Debt

A foreclosure does help with debt, but not all of it. It will take away their original mortgage. There are also times when a foreclosure will also remove any debt due to refinancing your home, as well as home equity loans and second mortgages.

Upside-Down/Underwater Mortgages

You may be required to pay off your home equity loans or second mortgages if there is not enough money received in the foreclosure. This often happens when your home is not worth what you paid for it, meaning that you owe more money on it than it could be sold for at this time.

When your home gets sold, if you don't have enough insurance to protect you, you may be required to pay the difference between what was paid for the home and what you owe. This is called a deficiency judgement and allows the bank or mortgage company to collect the difference from you.

Other Debts & Bills

Note that, even if you go through a foreclosure, you will still be required to pay your other bills. You will still have to pay your car payments, credit card bills, and other forms of debt that you may have. Though you will lose a significant amount of debt, you are not going to be completely debt free.

Contact us for all of your legal needs.

Categories: Foreclosure
  • Our Guarantee to Our Clients

    We promise to represent your best interests and keep you fully informed.

    Read Our Guarantee
  • Bankruptcy eBook

    Get a FREE eBook to become more familiar with the bankruptcy process.

    Download It Here
  • Our Video Center

    Click here to access a list of our firm's videos.

    Get More Information
  • When You're Ready To Talk

    We're ready to listen. Contact us to receive a free initial consultation.

    Request a Consultation

When You're

Ready to talk

Our firm is ready to listen. Call for a FREE case consultation.

Call Toll-Free 888.910.6652

"The Law Offices of James C. Shields is located in Torrance and proudly serves clients all throughout the South Bay including:

  • Long Beach
  • Carson
  • Irvine
  • Los Angeles
  • Palos Verdes Estates
  • Huntington Beach
  • Hermosa Beach
  • Redondo Beach
  • Manhattan Beach
  • Newport Beach
  • Costa Mesa
  • El Segundo
  • Rolling Hills
  • Hawthorne
  • Playa Del Rey and Culver City
Law Offices of James C. Shields - Torrance Bankruptcy & Estate Planning Attorney
Located at 21707 Hawthorne Blvd, Suite 204
Torrance, CA 90503.
View Map
Phone: (888) 910-6652
Local Phone: (310) 626-4404

Website:
© 2018 All Rights Reserved.