Questions about stripping 2nd mortgage - HSBC

[cspa522]

We are almost ready to file, only 20 days to go!! (yay!) We are going to have our house appraised a few days before we file, in the hopes to strip our 2nd, which has about $55,000 on it.

The 2nd is through HSBC, which we haven't paid since July. Has anyone dealt with them for a 2nd, a stripping, and if so, have you encountered problems? I'm nervous they'll object to it.

What are common problems that arise with trying to strip a 2nd?

Thanks!

[ShooFly]

Is your 2nd a HELOC? Mine is and I was able to strip it. The criteria is that the new appraised value has to be less than the 1st mortgage balance, then they can strip off the 2nd by law. Sometimes 2 appraisals are ordered. It may be different for a non-HELOC. I thought my house was worth much more than the appraisal came in at, even in this market, but the appraisal is the key. If your house comes in under the 1st balance, then there shouldn't be any problems stripping it off.

[cspa522]

Is your 2nd a HELOC? Mine is and I was able to strip it. The criteria is that the new appraised value has to be less than the 1st mortgage balance, then they can strip off the 2nd by law. Sometimes 2 appraisals are ordered. It may be different for a non-HELOC. I thought my house was worth much more than the appraisal came in at, even in this market, but the appraisal is the key. If your house comes in under the 1st balance, then there shouldn't be any problems stripping it off.

No, it's a straight 2nd mortgage. But that's what our attorney said - we're getting the appraisal and if it comes in lower than the value of the 1st mortgage we can strip it. I know that sometimes the 2nd mortgage company can protest it, etc. and was just curious what problems people have encountered, in general, and especially if they have HSBC.

[indebt00]

We lien stripped a 2nd and a 3rd. Our lawyer suggested the appraiser and it was $150 (cheap). Our appraisal came in at 1k less than our first mortgage...whew...that was close...but...

it al worked out...the 2nd and 3rd were stripped successfully, they didn't object or cause any problem, and now they are on the "unsecured" list of our debts and at the end of our 5 yr plan they have to strip the lien.

amazing process....now we owe what our house is worth instead of being upside down 70k.....