Lein stripping in Ch 7-any possibilities?

[psears123]

Hello,
I am currently in a Ch 7 with a couple of underwater but positive cash flowing real property rentals that I am looking to keep. One of the 2 banks isn't being very accomodating as far as the new terms go. This bank also holds an underwater 2nd mort on my other rental. If I have to give back the first property, I would love to be able to strip their 2nd off of my other property to "teach them a lesson". I know in Ch 13 you can do it; any ideas on how to do it in a Ch 7?

[frogger]

I would love to be able to strip their 2nd off of my other property to "teach them a lesson".

Wow....

What do you want to teach them? That it was a bad mistake to loan money to you?

If you want to strip, you need to be in a 13, not a 7.

[psears123]

Wow....

What do you want to teach them? That it was a bad mistake to loan money to you?

If you want to strip, you need to be in a 13, not a 7.

Actually, I want to teach them that you don't mess with the Zohan.

[frogger]

While you're teaching folks a lesson, keep an eye out for Karma. She's interesting.

[psears123]

Who are you anyways-CEO of JP Morgan? Listen up Jaime Dimon, if you don't have anything helpful in the way of bankruptcy advice, please move on to the Greedy Banker forum.

[Ihatebk]

You can only lien strip if it is a chapter 13 and you can prove the 2nd has no equity in the property via Realtor CMA or Apraisal. You will still have to pay an adequate amount to trustee to be considered a relative payment. The trustee may take all rent you make from the properties for the next 5 years. Your chances of succeeding at a chapter 13 are low.

[psears123]

Thanks for the reply!