BANKRUPTCY: New Supreme Court Ruling
On June 1, 2015 the United States Supreme Court ruled in a landmark decision that a homeowner who is the victim of predatory lending and has been approved for a second mortgage on a home and the value of the home is less than the combined debt of both mortgages, may not obtain relief by reducing the debt down to the fair market value of your home. You can find and read the decision by googling Bank of America v. Caulkett No 13-1421.
As a practical matter, this means that if you are upside down on your combined mortgage debt there is little or no motivation for you to reward the banks by reaffirming this debt package. You're likely better off walking away from the debt; wiping it out and getting truly FRESH START.
Every case is different and every fact pattern is different. However this recent ruling in this area bankruptcy law is very important for every person who has a second mortgage; is considering applying for one, or who is behind on their mortgage payments.