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Chapter 13 Mortgage Lien Strips.

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    Originally posted by jade73 View Post
    Any chance of getting a lien strip at this point if our home appraised this low?
    For purposes of valuation, the value of property is set at the start of your case (when your petition was filed). You "might" be able to squeak in a Motion to Determine Secured Status and Strip Lien. Please consult your attorney immediately. It gets more difficult to "back date" an appraisal as time passes, and I'm sure that will be the major issue with waiting this long to lien strip.

    I'm surprised your attorney didn't attempt a lien strip to start with as this has become part of a "boiler plate" of things that Chapter 13 attorneys do in all cases.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

    Comment


      Originally posted by justbroke View Post
      For purposes of valuation, the value of property is set at the start of your case (when your petition was filed). You "might" be able to squeak in a Motion to Determine Secured Status and Strip Lien. Please consult your attorney immediately. It gets more difficult to "back date" an appraisal as time passes, and I'm sure that will be the major issue with waiting this long to lien strip.

      I'm surprised your attorney didn't attempt a lien strip to start with as this has become part of a "boiler plate" of things that Chapter 13 attorneys do in all cases.
      You know it was kind of odd that they NEVER mentioned this to us as an option. They claim to be the largest BK filer in GA. Now I must call them!
      07-21-2009 filed Chapter 13
      05-02-11 CONVERTED TO CHAPTER 7 :

      09-07-11 DISCHARGED !!!!!!

      Comment


        Originally posted by jade73 View Post
        You know it was kind of odd that they NEVER mentioned this to us as an option. They claim to be the largest BK filer in GA. Now I must call them!
        Oh Georgia. That's in the 11th Circuit, where I am (only I live in Florida). The 11th Circuit has the landmark In Re Tanner case which permits lien strips by precedence in our Circuit (Georgia, Alabama and Florida).
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog

        Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

        Comment


          Originally posted by justbroke View Post
          Oh Georgia. That's in the 11th Circuit, where I am (only I live in Florida). The 11th Circuit has the landmark In Re Tanner case which permits lien strips by precedence in our Circuit (Georgia, Alabama and Florida).
          Can you explain what you mean by that? I'm not understanding
          07-21-2009 filed Chapter 13
          05-02-11 CONVERTED TO CHAPTER 7 :

          09-07-11 DISCHARGED !!!!!!

          Comment


            Originally posted by jade73 View Post
            Can you explain what you mean by that? I'm not understanding
            What I'm saying is that if you live in Georgia, Alabama or Florida, stripping a 2nd, 3rd mortgage is common practice and is quite simple... due to some landmark cases resolved at the appellate level.
            Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
            Status: (Auto) Discharged and Closed! 5/10
            Visit My BKForum Blog: justbroke's Blog

            Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

            Comment


              Originally posted by justbroke View Post
              What I'm saying is that if you live in Georgia, Alabama or Florida, stripping a 2nd, 3rd mortgage is common practice and is quite simple... due to some landmark cases resolved at the appellate level.
              Oh Ok, Thanks so much! I was on the phone for 15 minutes trying to explain a lien strip to the lady that answered and finally she came back and said I needed to make an appt to talk to the attorney.
              07-21-2009 filed Chapter 13
              05-02-11 CONVERTED TO CHAPTER 7 :

              09-07-11 DISCHARGED !!!!!!

              Comment


                Originally posted by jade73 View Post
                Oh Ok, Thanks so much! I was on the phone for 15 minutes trying to explain a lien strip to the lady that answered and finally she came back and said I needed to make an appt to talk to the attorney.
                Wow, 15 minutes. That's not saying much for your attorney's staff.
                Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                Status: (Auto) Discharged and Closed! 5/10
                Visit My BKForum Blog: justbroke's Blog

                Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

                Comment


                  Originally posted by justbroke View Post
                  Wow, 15 minutes. That's not saying much for your attorney's staff.
                  Yeah, Like I said..they claim to be GA's largest BK filer. It almost scares me. Can I transfer to another attorney, ha!?
                  07-21-2009 filed Chapter 13
                  05-02-11 CONVERTED TO CHAPTER 7 :

                  09-07-11 DISCHARGED !!!!!!

                  Comment


                    Well I found out first hand about Lien Strips today. Went in to talk to my attorney and we owe $68k on 1st mortgage & 23k on 2nd mortgage. They said we wouldnt be able to file a motion on this because we told them when we filed that we THOUGHT our home was worth $95k. Well that was just a THOUGHT. Wonder what would have been said if we THOUGHT the house was worth $50k?
                    Anyway that and the fact that the tax office says our property is worth $72k.
                    Won't be doing a lien strip.
                    07-21-2009 filed Chapter 13
                    05-02-11 CONVERTED TO CHAPTER 7 :

                    09-07-11 DISCHARGED !!!!!!

                    Comment


                      Originally posted by jade73 View Post
                      Well I found out first hand about Lien Strips today. Went in to talk to my attorney and we owe $68k on 1st mortgage & 23k on 2nd mortgage. They said we wouldnt be able to file a motion on this because we told them when we filed that we THOUGHT our home was worth $95k. Well that was just a THOUGHT. Wonder what would have been said if we THOUGHT the house was worth $50k?
                      Anyway that and the fact that the tax office says our property is worth $72k.
                      Won't be doing a lien strip.
                      You could always have the home appraised. When it comes down to it, that is really the only amount that matters.

                      Comment


                        Thats what I was thinking.
                        07-21-2009 filed Chapter 13
                        05-02-11 CONVERTED TO CHAPTER 7 :

                        09-07-11 DISCHARGED !!!!!!

                        Comment


                          Originally posted by jade73 View Post
                          Well I found out first hand about Lien Strips today.
                          Valuation is the day that you filed. I "thought" my house was worth $650K when I filed. However, it was "actually" worth less. Although I did put $650K on the tax form, and the tax assessor had it in the $500K range... I did a real appraisal to get the true value, which was MUCH MUCH less than what I wrote.

                          Again, when you want to do a lien strip, or even don't want to do one, I believe that it is VERY important to just get an appraisal anyhow... just in case. It's so hard to do "after the fact" appraisals, so trying to do a lien strip late in the game, without a reliable and defensible appraisal of market value, is not easy.

                          As you learned, and as I was suggesting earlier, getting the actual value after the fact, would be difficult. I'm sorry that this is what you discovered.
                          Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                          Status: (Auto) Discharged and Closed! 5/10
                          Visit My BKForum Blog: justbroke's Blog

                          Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

                          Comment


                            This is great information. We did a 7 and are now filing a 13 for a lien strip on our 2nd. I do have a question if anyone can answer. We did have to fall a bit behind on our first to do this so now of course we have incurred late fees, attorney fees (by the mortgage) etc. Are these fees included in our plan or can these fees be tacked onto to our first? I will of course ask our attorney too but wondering if anyone knows/has any experience with this? THANKS!!

                            Comment


                              Originally posted by frankies_mom View Post
                              This is great information. We did a 7 and are now filing a 13 for a lien strip on our 2nd. I do have a question if anyone can answer. We did have to fall a bit behind on our first to do this so now of course we have incurred late fees, attorney fees (by the mortgage) etc. Are these fees included in our plan or can these fees be tacked onto to our first? I will of course ask our attorney too but wondering if anyone knows/has any experience with this? THANKS!!
                              These fees must be paid as "arrears" through your plan. Also, you need to be REALLY sure that your Chapter 20 lien strip is going to work. I know that it won't work in Florida, because we require a "discharge" (in the Chapter 13) in order for the lien strip to stick.
                              Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                              Status: (Auto) Discharged and Closed! 5/10
                              Visit My BKForum Blog: justbroke's Blog

                              Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

                              Comment


                                I hope this works, more and more courts are holding that you cannot do a lien strip in a chapter 13 that is non-dischargeable; meaning filed within 4 years of filing your chapter 7 bankruptcy.

                                Comment

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