Nervous...

[justbroke]

If you have a heloc can you strip that as well.

Most DEFINITELY! A HELOC is secured against your real property (real estate).

However, be careful. You may end up with TOO MUCH unsecured debt and push you into a Chapter 11, or have to not strip the HELOC.

Make sure you run all your numbers first.

[2strong]

If you have a heloc can you strip that as well. i

[justbroke]

I thought that when you surrender or foreclose that would be a unsecured debt???? I'm aware about the deficiency...so the diff would be secured???

Incorrect. Surrendering does not magically change something to unsecured. The property is what secures it. Until the property is sold or otherwise transferred, there is no "unsecured" portion of it, per se.

So with the deficiency, after it is sold at auction, then the difference between what the lender obtained for it, and what you owed, is the "unsecured" amount.

[mbutterfly]

I thought that when you surrender or foreclose that would be a unsecured debt???? I'm aware about the deficiency...so the diff would be secured???

[NowImDownInIt]

Good luck justbroke... I am watching your situation intently and I hope that you get by!

[justbroke]

Surrending an investment property 162K which becomes unsecured

The surrendering of an investment property, which is secured debt, doesn't magically make it an unsecured debt. However, any deficiency on that property, may come back to haunt you.

Best of luck to you as well!

[mbutterfly]

HI JUSTBROKE,

I'm might be on the same situation.

unsecured 135K
striping 2nd mort 96K
Surrending an investment property 162K which becomes unsecured
valuation of cars equity $5k
secured $206k

I'm filing next month and I hoping that all of my unsecured do not file thier claims..

[hopeforus]

man all that was like a foreign language to me. but good luck tomorrow!

[justbroke]

My claims bar date (the last day to file claims for non-governmental entities) is tomorrow (November 12, 2008).

However, I'm right up against the unsecured debt limit for a Chapter 13. I mean REALLY up against it. (The limit is $336,600.00)

I'm at $325,433.38, with a few BIG claims that haven't been filed (totaling about $21K). Not to mention that I may have to withdraw my valuation motion on one car, because the $3K in savings will kick my case to a Chapter 11. Sheesh.

So, this is just a friendly public service reminder. Be careful when you go about stripping 2nd Mortgages and Cramming Down cars! It could hurt you!