Lien stripping a mortgage with a cosigner...

[BrokeIslandGirl]

Hello all,

I've been searching and reading thru lien stripping threads to see if my concern comes up in any of them.

It's been about 6 months since I first considered BK. Finally got some numbers from my atty who says it looks around $250 a month for the first 13 and then 450-545 for the remaining since my car will be paid off by next year. I'd be paying back about 14% or so to unsecureds (I think).

Not bad, but my real concern is my 2nd mortgage. Was thinking about trying to strip it but I have a co-signer on the loan as well. We aren't married but own the home together. Could I still attempt a lien strip or would he have to file his own case as well?

Thanks for any advice/suggestions.

I am so glad I found this site. I've learned so much!!

[BrokeIslandGirl]

Anyone??

I ask because he says SO might need to file his own 13 to do the mortgage strip. He doesn't have as much experience with mortgage stripping so I'm just trying to learn of other's opinions while doing more research.


Thanks.

[lrprn]

If you file a 13 and your home is worth less than your first mortgage, then you can strip your part of the second mortgage and owe nothing on it.

However, as your lawyer said, after you file if your co-signer doesn't also file a 13, he will end up owing the entire second mortgage. I would imagine he will not be very happy with that situation.

[flnybk]

Can you strip a 2nd and 3rd mortgage in a chapter 7? Or just a 13? How is it striped? Do you just stop paying it after discharge?

[justbroke]

I ask because he says SO might need to file his own 13 to do the mortgage strip. He doesn't have as much experience with mortgage stripping so I'm just trying to learn of other's opinions while doing more research.

Even more interesting will be whether he can actually strip the second in this own 13!!!

I'm unsure because you didn't mention if he is on the first mortgage? So who is listed on the first mortgage?

[BigJohn]

Can you strip a 2nd and 3rd mortgage in a chapter 7? Or just a 13? How is it striped? Do you just stop paying it after discharge?

You can't do it in a 7. If the house appraises for less or equal to the first mortgage, then it can be lien striped.

[BnkrptcyLwyr]

Hello all,

I've been searching and reading thru lien stripping threads to see if my concern comes up in any of them.

It's been about 6 months since I first considered BK. Finally got some numbers from my atty who says it looks around $250 a month for the first 13 and then 450-545 for the remaining since my car will be paid off by next year. I'd be paying back about 14% or so to unsecureds (I think).

Not bad, but my real concern is my 2nd mortgage. Was thinking about trying to strip it but I have a co-signer on the loan as well. We aren't married but own the home together. Could I still attempt a lien strip or would he have to file his own case as well?

Thanks for any advice/suggestions.

I am so glad I found this site. I've learned so much!!

Must both file Ch 13 to strip the mortgage. Otherwise, the mortgage company can still foreclose on the non-filers interest.

[BrokeIslandGirl]

Thanks everyone for the responses. We are both listed on the first and second mortgages. Our servicer is EMC Mortgage, tried asking for loan mod but they say investor won't allow any type of modification for the first but they say we can modify the 2nd mortgage.

I figured, what's the point trying to modify the second when it's the first mortgage that is set to readjust in 2 years and we're underwater. The 1st is 220K and the 2nd is $55K. The last we checked with a realtor, she said we may be able to sell the house for 175K to 200K.

Now we just have to sit down together with the lawyer and figure our plan of action. Thanks again. =)

[CH33 Paralegal]

.....only helps the FILER.

[BrokeIslandGirl]

.....only helps the FILER.

Thanks. What I meant to say was that we'll both be meeting with the lawyer and come up with an action plan and seek his recomendation as to how to proceed. Should we file at the same time, I file now and he file later sort of thing.

Appreciate the feedback though.

[CH33 Paralegal]

I don't think the timing of when each of you files will be a big deal. But make sure that the attorney you meet with knows that you guys are both trying to strip the 2DSD, each through you individual BK's...which you'd have to since you aren't married.

It could be a tricky thing for an attorney to do, and you may need someone who is willing to take on intensive case situations...which may lead to more expensive attorney fees. My firm would probably shy away from it due to the amount of attention the case would need.

[BrokeIslandGirl]

It's true about situation being pretty intense. I just hope the attorney I've retained is up for it. We'll ask more questions of him and may have to find another one, if necessary, if he feels he cannot handle our case. I live in Northern Virginia. The one lawyer I met with who seemed like she could get the job done wanted $3500 all up front before the case could be filed. No rolling over any balance into the plan. I so wish I could retain her but just can't afford to.

We both own a home overseas as well that is currently being rented that has some equity to it, not much though so that's another thing to worry about. So many things to consider going into filing my BK.

Thanks again =)