stripping 2nd mortgage

[imoverit]

Is it possible to strip a 2nd mortgage and make it go to the unsecured creditors? I owe 220k on the first and 70k on the 2nd. The house is valued at maybe 175-180k. Then possibly when a 5 year repay plan is done I might actually be able to sell it! It is truly a terrible situation so many of us are in

[albacore44]

Talked to my attorney about that same thing yesterday.My you have a small one . My heloc is 242K . you have to get an appraisal, and it will probably end up in a fight with creditor. they will get their own appraisal. I as told most judges don't like to do these. to top it off, you would pay the same payment you make for 5 years into your chapter 13 plan. I'm no expert, but that was what my attorney said.

[HHM]

Yes, if the house is worth less than you owe on your first mortgage, you can strip the 2nd. It is typically a fight with the 2nd mortgage, but as long as you have ducks in a row, its nothing to be scared of.

I am surprised at albacore's attorney taking such a negative view of the subject. The opposite is actually true, judges are quite inclined to grant these motions.

[albacore44]

Yes, if the house is worth less than you owe on your first mortgage, you can strip the 2nd. It is typically a fight with the 2nd mortgage, but as long as you have ducks in a row, its nothing to be scared of.

I am surprised at albacore's attorney taking such a negative view of the subject. The opposite is actually true, judges are quite inclined to grant these motions.

yes, I think i'm going to consult additional consulers. this guy has been in business 30 years, BK only. His clerk told me the court judges have been refering clients to him, and sometimes they stop taking cases. he told me i only qualify for a 13, and to go buy a car, and let the other car go into plan since my existing car loan will pay off in a year and the trustee will request a step plan. Understand the concept, but the whole thing makes me uneasy. i am very close $$ wise in the means test, like 100-200 a month in disposable income. i should somehow be able to qualify for a 7 that is way close

[justbroke]

I will add that which District you are in, can be the difference of how "easy" and 'acceptable" the lien stripping is. Most of the 11th Circuit Court (Florida, Georgia, Alabama) has absolutely no problem with them.

As has been posted, you need to get a full professional appraisal (URAR) and make sure it's done by a licensed / certified professional appraiser. Your attorney would submit this with a Motion to Strip Lien and Determine Secured Status (depending on the District, this could be called something else).

These things are so routine in my District, that they are done by Motion (that's already been argued whether it's by Motion of AP). I've witnessed 3 or 4 of these so far, and they take 10 minutes of hearing if you have all the right paperwork (e.g. URAR). In one case, the Bank was so lazy, it never got an Appraisal and the judge was like... well... I'm sustaining the order to strip the lien as the Bank had plenty of time.

Banks are strange. They act like it takes 30-60 days to get an appraisal. I ordered an appraisal and had it completely turned around in less than ONE week!!!

[mmenz22779]

WOW JustBroke even after a B/K 13 you need to pay $4960/ month. I would hate to see what you were paying,

But then again presently i make 120k a year and pay out 10000 a month to bills (3 houses) well soon to be 1 house

Sorry to highjack thread.

[justbroke]

WOW JustBroke even after a B/K 13 you need to pay $4960/ month. I would hate to see what you were paying,

But then again presently i make 120k a year and pay out 10000 a month to bills (3 houses) well soon to be 1 house

Sorry to highjack thread.

Well, you're getting to my neighborhood of payments. I still pay out monthly around what you're paying. However, I'm at least getting rid of one property.