Chapter 13 Mortgage Lien Strips.

[spidge]

Oopsy, I see now that I responded to an old post. I was thinking I was responding from a post dated from Feb 2015.

So glad to see it worked out for you dmc.

I am a bit jealous though.

[LadyInTheRed]

I missed this post, sorry. Are you in Riverside?

I am going through the same thing but it was not for the lack of correct servicing. My attorney followed the rules in effect in our district in Jan 2011 and sent me a copy of the proof of service, but the lender did not answer. You will likely have to go through an Adversarial Proceeding and yes, pay a couple grand for it in order to complete the lien strip. From what my attorney stated is that most likely the lender won't show and I will have an order in hand to complete the lien correction myself.

I am sure this is not what you want to apply to your case, but I hope it helps.

spidge, dmc-2008's post was 2 years ago. The attorney served the proper notice and the lien strip was granted and the plan confirmed. http://www.bkforum.com/showthread.ph...4-On-the-ledge!

[spidge]

Mine was denied today! Something about "proof of service for notice of the original or cont. hearing inc. the deadline to file response was not filed"

I read this off court doc online. When i called my atty today the said everything was fine but the courts need more time to review.

I think atty forgot to file something and i hope he can fix it????

I missed this post, sorry. Are you in Riverside?

I am going through the same thing but it was not for the lack of correct servicing. My attorney followed the rules in effect in our district in Jan 2011 and sent me a copy of the proof of service, but the lender did not answer. You will likely have to go through an Adversarial Proceeding and yes, pay a couple grand for it in order to complete the lien strip. From what my attorney stated is that most likely the lender won't show and I will have an order in hand to complete the lien correction myself.

I am sure this is not what you want to apply to your case, but I hope it helps.

[jedolaw]

Yea I really like the information and thanks for the time.

BK I think you are right.

[spidge]

Anyone have new info on the need for an adversarial preceding to complete a lien strip?

I am in Riverside and it looks as if there was a meeting of the BK judges where they decided an adversarial proceeding was needed to complete a lien strip and to ensure service to the creditor in assured.

This fires me up as my attorney and I followed the rules in effect when I filed my 13 with lien strip.

I am looking for any way to get out of paying more money for the AP to complete the lien strip which I had a clear idea on how to complete when I entered into the ch13 commitment originally.

Signed, still pissed off!

[justbroke]

First rule of bankruptcy: bankruptcy does not extinguished properly perfect liens.

Second rule of bankruptcy: when you think the lien is simply a "credit card" lien (a judgment lien) and not entitled to priority or to survive the bankruptcy, see the first rule of bankruptcy.

If you filed Chapter 13, those liens would need to be paid within the bankruptcy if you retain the property. It reads as though you need an asset protection specialist.

[NHorizons]

Stripping CC Liens When Home is Valued Over Debt- Possibly Selling

I'm new to all of this, and after 5 years of surviving several foreclosures, I'm currently applying for my 4th Loan Mod in 4 years: deferred past due payments).

Trying to catch up on all of the financial disaster during which several liens from previous credit card companies were filed against my home.

Question: If I file Ch 13, it appears that those liens could be discharged if my first is greater than the value of my home.

THIS IS NOT THE CASE.

There could be approx 200k in equity right now in the home, above all liens. If I file Ch 13 do any of these credit card liens get excused?

If I sell my home, after filing Ch 13 to access equity, will all credit card liens become due?

Thanks!

[tomochan]

I apologize if this question has been answered but I can't seem to find anyone in this situation. This is my final year in Chapter 13 and my second mortgage has been paid as an
"unsecured" debt by the Trustee for the past 4 years. The lien strip was approved on my second mortgage in December 2009 and deemed as an unsecured debt. In 2013 I received notices to modify my second mortgage and In February 2014 I started receiving a statement from the second mortgage holder showing the payments received from the Trustee and the balance of the second mortgage. Why am I receiving these statements now?

[Delesh]

Oopps, sorry. I didn't fully read. You are correct, under 522(f)(1)(A) a judicial lien can be stripped from a home if the lien is impairing the exemption.

Be prepared, if this goes to hearing, you will need to have whoever did your appraisal TESTIFY in court.

If the appraisal gets accepted by the court for an amount above my exemption will I have to pay that outside the bankruptcy or will it be added on to my BK payments?

[HHM]

Oopps, sorry. I didn't fully read. You are correct, under 522(f)(1)(A) a judicial lien can be stripped from a home if the lien is impairing the exemption.

Be prepared, if this goes to hearing, you will need to have whoever did your appraisal TESTIFY in court.

[Delesh]

Hi HHM,
Sorry, I am not good at explaining the situation. Just to clarify, it is not a second mortgage that is being stripped. It is a judgement lien (involuntary). As far as I understood, the lien could be avoided if it infringes any exemptions. Since my mortgage (1st and only) plus my exemption is close to the value of my home the judgement will most likely infringe at least part of that exemption and so would at the very least be reduced. I am guessing that the creditor who owns the lien is trying to show an increased value of the house to keep whatever they can as a lien on the house. I am wondering what would happen if they succeed and the lien is reduced. Would I have to pay them outside the bankruptcy or would that money be folded into the payments I make?

[HHM]

Delesh, I am afraid the creditor is correct. The homestead exemption plays NO role in calculating the lien strip.

To do a lien strip, the value of the home must be less than the balance due on 1st mortgage, not less than 1st Mortgage + Exemption. Sorry.

It sounds like you are pro se (without an attorney), so the court will probably cut you some slack, but if an attorney brought such a lien strip, the attorney would probably be sanctioned. Hopefully the court won't order you to pay the opposing counsels attorney fees for defending your lien strip.

[Delesh]

I have read through most of the posts, but I have a question. Sorry if it has been asked already.

I am filing chapter 13 and am claiming a homestead exemption. With the equity and exemption I will be very close to the value of the house. There is a lien from a judgement (loan default). I have filed to have the lien stripped and converted to an unsecured creditor. The creditor filed an objection and is demanding their own appraisal. They are even claiming that my homestead exemption is not valid but they don't have a reason why it's not valid, but they want to investigate to find one (weird).

If their appraisal is above the exemption will they be able to keep a reduced lien on the house and accrue interest until paid outside the bankruptcy or will that difference be paid over the chapter 13 payment period?

Also, what is the usual outcome when 2 parties disagree on the value of the home? Is the judge more likely to side with the creditor's lawyer/appraiser?

Housing values are all over the place right now and I am sure the creditor's lawyer will do whatever possible to inflate the apparent value. It seems that allowing a lien to remain after bankruptcy defeats the entire purpose of bankruptcy. Thanks for any insight/advice.

[dmc-2008]

Resched for April. Almost there! Thank goodness the timeclock starts with the first payment to trustee!!!

[dmc-2008]

Thank you! I did not want to tell him that i found the court calender with outcomes for today and read about it, even though i didnt understand it! I didnt want to be confrontative. So i guess now he has to fix it and I go from here. Dang it all! Oh well, as long as he fixes it, i wont freak! But i did print out the docket info i found this morning jic! Thank you so much!