Question for those who've done a lien strip

[momofthree]

So, as you may know from reading my past posts, the whole reason we filed ch. 13 vs. 7 was to strip our 2nd mortgage lien. We only just filed on 2.28 and I accessed 13datacenter for the first time today. On the "claims summary" it lists Wells Fargo (2nd mortgage) and under "% of claim to be paid" it states 100%. Why is that?

It isn't listed to be paid on our petition and plan that were filed. At the end of our petition it states:

"Attachment A

7.02 The debtor will file a motion to value the second trust deed of Wells Fargo Bank on the debtor's resident at a value of $0."

When will the claims summary be updated to reflect the lien strip? I feel very uncomfortable with it being listed at 100% payback right now....

[justbroke]

I never get overly concerned with what's on 13DataCenter because it's the Trustee's system for paying claims. Wells is absolutely entitled to be paid 100% of their payment due under your plan. Unless and until you actually strip the 2nd, they are due their money and 13DataCenter is accurate to reflect that fact.

[BreatheEasy]

I would not be concerned at all, at least based on how our case progressed.

We filed March 2009, and the lien strip did not take place until this past week. The second mortgage went to $0.00 under "Principal Owed".

[momofthree]

Okay, so the lien strip can take a while to happen. I was thinking it'd be instantaneous, lol. Silly me. Nothing is instantaneous in the legal world...

[STofSHK]

From what I have read, you have to complete the scheduled payments in order to be stripped. If you dont, you still owe the 2nd mortgage.

[momofthree]

From what I have read, you have to complete the scheduled payments in order to be stripped. If you dont, you still owe the 2nd mortgage.

That part I understand, but on 13datacenter, it states that I am paying them back 100%, which I'm obviously not. That was my concern....

[bkstuff]

So really, the lien strip id not "done" until after the 3 or 5 yr plan then - at least that is the way I understand it.

[justbroke]

That part I understand, but on 13datacenter, it states that I am paying them back 100%, which I'm obviously not. That was my concern....

I don't know if you read my post or understand my post. The info in 13datacenter is correct. You have not stripped you lien yet, so you do in fact owe 100%.

Once your lien strip is approved, the Trustee will change the percentage and change it to an unsecured claim. As a matter of fact, the Trustee will enter a "new" claim in 13datacenter that will comprise the "unsecured" claim. The secured claim will be set to 0%.

[momofthree]

I don't know if you read my post or understand my post. The info in 13datacenter is correct. You have not stripped you lien yet, so you do in fact owe 100%.

Once your lien strip is approved, the Trustee will change the percentage and change it to an unsecured claim. As a matter of fact, the Trustee will enter a "new" claim in 13datacenter that will comprise the "unsecured" claim. The secured claim will be set to 0%.

Yes, I understood your initial post, but I appreciate you elaborating. I'll have to keep my eye out for the new "unsecured claim."

My post that you quoted was simply responding to the person who said that I will still owe the 2nd if I don't complete my plan. I understand that. I will also owe my credit cards if I don't complete my plan too, but they show as 0% payback, so I was expecting the 2nd to as well. But obviously, it will take a while to get the approval for the strip and have it updated on the website.

Thank you to BreatheEasy, I guess it may very well take them 1+ years to update it on the website, so checking daily will be a huge waste of my time, lol.

[justbroke]

Thank you to BreatheEasy, I guess it may very well take them 1+ years to update it on the website, so checking daily will be a huge waste of my time, lol.

You appear to understand the process well. After your lien strip is approved (granted) and your months past confirmation... you'll be a pro!

[indebt00]

Yes, I understood your initial post, but I appreciate you elaborating. I'll have to keep my eye out for the new "unsecured claim."

My post that you quoted was simply responding to the person who said that I will still owe the 2nd if I don't complete my plan. I understand that. I will also owe my credit cards if I don't complete my plan too, but they show as 0% payback, so I was expecting the 2nd to as well. But obviously, it will take a while to get the approval for the strip and have it updated on the website.

Thank you to BreatheEasy, I guess it may very well take them 1+ years to update it on the website, so checking daily will be a huge waste of my time, lol.

don't forget your secured debt always will come before your unsecured on payments....the secured get paid first...and any left over goes to the unsecured (credit cards and your 2nd later when lien stripped)