Lien Strip With 19 Months to go...

[zeezee]

So when I first started my 13 in 09' my house was appraised at $500k, I was hoping it would have come in at a lot less but people really weren't selling their homes a lot back then. Fast forward to now, last month one of my neighbors sold their home for $320k (Just under what I owe on my 1st). I have an issue though, I have been under the radar except for a few months ago where I got my payments suspended for 3 months due to a large repair bill. Anyway, I want to pursue getting my 2nd stripped but don't want to call attention to my recently increased income. The home is nearly exact to my home (but I have a pool). Maybe I should just leave it alone...My second is at about $96k and 10.75% with HSBC. Thoughts anyone?

[HHM]

Generally, lien strip needs to be done as part of the plan confirmation and values are established at the time the case is filed. Sorry.

[zeezee]

Thanks HHM...as I think about it more, I'm just going to ride it out and try and refi once I'm done with my plan. Don't want to rock the boat now!

[justbroke]

I will expand on what HHM wrote. Valuation of a home in a Chapter 13 is done at date the petition is filed. You can't have it valuated when you're far into your plan, because it becomes difficult to "back date" the valuation to the date of the petition. A lien strip would probably be a non-starter at this point in time unless you have an appraisal performed around the same time you filed the petition. Even in that case, most jurisdictions find that confirmation is temporal and that means that all "issues" are resolved upon confirmation. That would include valuation so you can't really go back and undo the confirmation.