Lien stripping our 2nd mortgage - question on appraisal.

[BigJohn]

We have a 2nd mortgage. There are several houses in our neighborhood that are in better shape and are selling or have sold for less then our first mortgage. I have been making copies of all of these sales. I plan on giving them to the appraiser who is going to appraise the property.

My question is, "is there anything else I can do"? My goal is to have the 2nd mortgage go away when we file. Any help will be appreciated.

[Michmom321]

We are in the same situation. We had our house appraised and took it to the 341 and confirmation hearing. The second filed an objection, and also had our house appraised. At the confirmation they agreed that the equity is not there for the second, so it moved to unsecured. The catch is that if the plan fails before the 5 years are up, it moves back to secured. It is still a great deal because my husband and I will do whatever it takes to finish the 5 years and not do this again. We are waiting now to sign the revised papers, then it is on track to get confirmed. My best advise is to pay for a professional appraisal. We did that on the advise of our attorney and it was our ace in the hole.

[HHM]

You have done everything you can do. Good luck, hopefully, the appraisal comes in where you need it.

Michmom makes a good point, when you lien strip, in order for it to stick you have to get a DISCHARGE of the 13. I also believe that if you convert to a 7, the lien strip is nullified.

[BigJohn]

Got the results back from our appraisal; the house appraised at about 95% of the value of the 1st mortgage. Hopefully lien stripping the second mortgage should not be a problem. We bought the house almost 2 years ago (in August 06) from a county sale so we did not pay very much for the house. The sale was done with an 80/20 loan financing. Because the house has a low value, I doubt the bank holding the second mortgage will object (fingers crossing).