How would a lien strip work if you have a 1st, Fixed Equity Loan, and HELOC? (3 liens).
House is worth more than the 1st, but after 1st plus the HELOC, there maybe nothing left for the Equity loan. (I would have to check to see how much home values have fallen in this area). Could that Equity loan be stripped and keep the 1st & HELOC? Would the HELOC then be lumped in with the total unsecured debt?
To mix it up a bit more... What if originally one had the 1st & HELOC. Fixed Equity was supposed to pay off and freeze the Equity Line. It paid it off, but it did not freeze it and it was tapped into a year later. The HELOC lien was not removed either, so I am thinking that still 2nd in lien order.
But since the line was supposed to be closed and I used it, it might make attempting to strip the loan fruitless.
By my calculations, I'd actually pay back a higher total amount to the other unsecureds doing this. And after 5 years I'd be in a much better position with a much lower house payment.
House is worth more than the 1st, but after 1st plus the HELOC, there maybe nothing left for the Equity loan. (I would have to check to see how much home values have fallen in this area). Could that Equity loan be stripped and keep the 1st & HELOC? Would the HELOC then be lumped in with the total unsecured debt?
To mix it up a bit more... What if originally one had the 1st & HELOC. Fixed Equity was supposed to pay off and freeze the Equity Line. It paid it off, but it did not freeze it and it was tapped into a year later. The HELOC lien was not removed either, so I am thinking that still 2nd in lien order.
But since the line was supposed to be closed and I used it, it might make attempting to strip the loan fruitless.
By my calculations, I'd actually pay back a higher total amount to the other unsecureds doing this. And after 5 years I'd be in a much better position with a much lower house payment.
April 2009 - 341 Meeting 
April 2014 Plan completed 
May 2014 - Discharged!!
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