Unsecured portion of HELOC

[Bob Walker]

Hello everyone!

My discharge is coming soon and I need to file what my attorney refers to as a Motion to Vacate Unsecured Portion of a Lien.

Basically my house was valued less than what I currently owe on it when you total my 1st and 2nd mortgage and the difference can be "lien stripped" from the 2nd mortgage.

Can anyone provide some assistance on this and possibly provide to me a sample of this motion?

I am doing this myself as I don't have enough money to pay an attorney to do this, so any help will be very much appreciated.

You can email me offline at bobnwa at yahoo . com

Thank you so much, in advance.

Bob

[Bob Walker]

Can anybody provide some help here?

[HHM]

Bob, no one on this forum is an attorney to my knowledge, so providing you with the specifics of a Motion to Vacate is probably beyond what our members are capable of.

Has your attorney actually told you that the HELOC qualifies for lien stripping. I am guessing you took out the HELOC after you purchased the house so therefore the HELOC is not a purchase money security interest and therefore may qualify for lien stripping. But since a HELOC is a consensual lien, I doubt you would have much luck getting it stripped in a chap. 7.

Another option would be to do a reaffirmation agreement with the HELOC company where the bank reduces the principal balanced owed. The catch is, if the value continues to decline, or you miss any future payments on the HELOC, you are liable for deficiency balances and the bank will probably, as a condition of reaffirmation, have the principal balance revert to the pre-reaffirmation principal balance (minus applied payments) in the event of default. But at least with a reaffirmation, you have the opportunity to negotiate with the lender to reduce the principal, term, interest, etc.

[Bob Walker]

Thank you for the advice! I saw that the actual motion is titled MOTION FOR LIEN AVOIDANCE. But if I work out the reaffirmation agreement with my bank, it may be eaiser?