Pacer says my lien strips were ordered by the judge this week

[indebt00]

so that is good...I had a 2nd and a 3rd

it does say if I convert to a ch 7 that the lienstrips are void. I also don't get a clean title until we complete our ch 13...which makes sense.

well...some good news...now I wish we could just get confirmed. still waiting after 6 months

[HHM]

Sounds like you are on your way. As you are aware, the lien strips do not become official until you receive your chapter 13 discharge.

[indebt00]

Sounds like you are on your way. As you are aware, the lien strips do not become official until you receive your chapter 13 discharge.

Yeah I saw that...but I guess that is ok. It's just nice knowing we will not owe way more than our house is worth. down the road it will be great for re-fi our current first which is an ARM unfortuneately.

[LVGyrl]

Hi! This is my first post and I have a question for you. I just spoke to a BK lawyer and he said he would not include my second as an unsecured debt and they would not receive any of the fund I am paying into my chapter 13. He said the 2nd will be stripped and I will owe nothing after I have paid for 5 years. Does this sound legit?

He said the mortgage companies are so overwhelmed they are not contesting the decision to not have their seconds paid back.

[indebt00]

The not being listed as unsecured fund is confusing to me....

our 2nd and 3rd were listed as Secured debtors but that they would be lien stripped. I thought they got a piece of the unsecured debtor pie payment???

and yes at the end of our BK if we complete it then we are free of that debt and their liens are void

[HHM]

Hi! This is my first post and I have a question for you. I just spoke to a BK lawyer and he said he would not include my second as an unsecured debt and they would not receive any of the fund I am paying into my chapter 13. He said the 2nd will be stripped and I will owe nothing after I have paid for 5 years. Does this sound legit?

He said the mortgage companies are so overwhelmed they are not contesting the decision to not have their seconds paid back.

Either there is a misunderstanding, your plan is only paying priority debts, or your attorney is wrong. The 2nd mortgage does get an unsecured claim in your BK. Maybe your attorney is betting that the 2nd mortgage won't actually file a proof of claim to get paid in your chapter 13.

[LVGyrl]

Maybe your attorney is betting that they 2nd mortgage won't actually file a proof of claim to get paid in your chapter 13.

Yes, that sounds like how he actually siad it.

[indebt00]

My 2nd and 3rd mortgage companies both made claims....so I wouldn't count on that. but it doesn't matter because the judge's order puts them in the unsecured category

[justbroke]

Either there is a misunderstanding, your plan is only paying priority debts, or your attorney is wrong. The 2nd mortgage does get an unsecured claim in your BK. Maybe your attorney is betting that the 2nd mortgage won't actually file a proof of claim to get paid in your chapter 13.

Our "template" Order on Motion to Determine Secured Status and Strip Lien -- which was actually based on my Order format as one of the Attorneys predicted -- has three clauses that are mandatory.

First, they must place the full legal description including the address. Second, they must indicate that the lien reverts upon conversion to a Chapter 7 or dismissal without discharge. Third, and finally, the secured claim submitted is treated as an unsecured claim.

I have read some places where creditors got in trouble with filing secured claims without putting some leave to file an unsecured claim after foreclosure. However, the conditions of the lien strip in my District, at least, require the allowance of an unsecured claim.

My 2nd and 3rd mortgage companies both made claims....so I wouldn't count on that. but it doesn't matter because the judge's order puts them in the unsecured category

The same in my District.

[cc8225]

Hi indebt,

Did your second and third challenge your strip? just curious, I am stripping my second and third my aprs. came in 10000 below the first..

[indebt00]

Hi indebt,

Did your second and third challenge your strip? just curious, I am stripping my second and third my aprs. came in 10000 below the first..

I don't know if they did...don't think so..my lawyer did a hearing in dec and then the judges order came thru this month. so I don't think they challenged. I think my lawyer just had to go thru the process to get it done. and I was even less than $10k under the 1st.

the only thing that is scary is that if we fail the ch 13 or change to a ch 7 along the way the lien strips go away and the mortgages come back.

[NoTomatoCan]

Congrats! Nice to hear from others who successfully lien strip homes that are underwater but so close to the value on their first.

We file in about a month and our home is currently appraised at about $6k less than what we owe on the first. Due to some income issues we need to wait until March to file, so we will be closer to only $5k underwater on the first. I know by law it only needs to be $1 (or probably even 1 cent) but I won't feel comfortable until I actually see my own lien stirp on Pacer!

[indebt00]

Congrats! Nice to hear from others who successfully lien strip homes that are underwater but so close to the value on their first.

We file in about a month and our home is currently appraised at about $6k less than what we owe on the first. Due to some income issues we need to wait until March to file, so we will be closer to only $5k underwater on the first. I know by law it only needs to be $1 (or probably even 1 cent) but I won't feel comfortable until I actually see my own lien stirp on Pacer!

just fyi...it took 5-6 months for the lien strip to go thru after we filed.