Chapter 13 lien stripping is a process where homeowners can eliminate a 2nd or 3rd lien such as a Home Equity Line of Credit. If the value of the home is lower than the amount that is owed for the 1st mortgage, it is possible that a 2nd or 3rd mortgage can be eliminated. Lien stripping was uncommon in previous years, but with the recent drop in the housing market, lien strips have become more frequent for borrowers that file a Chapter 13 Bankruptcy. As a general rule, when a … [Read more...] about Chapter 13 Lien Stripping – Eliminate Second Mortgage Lien
Filing Bankruptcy
Second Mortgage Lien Stripping With Chapter 13 Bankruptcy
Lien stripping simply refers to a process within a Chapter 13 bankruptcy that allows individuals who are upside down on their loans to get rid of any junior liens, such as second or third mortgages. "Upside down" means that the value of the home has dropped below the amount of the owed for the first loan balance. That results in the junior liens becoming unsecured, which essentially means that there is no collateral to secure the loan. Within the context of a bankruptcy, a stripped lien is … [Read more...] about Second Mortgage Lien Stripping With Chapter 13 Bankruptcy
Can Bankruptcy Get Rid Of a Second Mortgage Lien?
The good news for homeowners is that second mortgage liens can be eliminated witch Chapter 13 bankruptcy in a process known as lien stripping. A Second mortgage lien is usually a home equity loan that originated after the primary mortgage on the property. The rule that allows a lien to be stripped is that there is no equity that secures the lien in whole or in part. What that means is that they 2nd lien must be unsecured. The borrower must prove that the value of the home is less than the … [Read more...] about Can Bankruptcy Get Rid Of a Second Mortgage Lien?
How to Get Rid of Second Mortgage?
To answer the question of how to get rid of second mortgage lien you should speak with our bankruptcy attorney. However, most of the time, you can get rid of the second mortgage lien by filing a Chapter 13 bankruptcy. This is referred to as chapter 13 lien stripping. The simple rule of thumb is to determine if the value of your house is less than the first mortgage. If you are upside down on your first mortgage, you may be able to file Chapter 13 bankruptcy to remove the second … [Read more...] about How to Get Rid of Second Mortgage?
Get Rid of Debt With Experienced Bankruptcy Attorneys in Los Angeles
There are times when life gets complicated and circumstances make it impossible to keep up with all the expenses and the bills and the debts that result. Whether it is job loss, medical bills, or personal events such as death or divorce, credit card debt and mortgage payments can become overwhelming. Filing bankruptcy can be a very good solution and strategy for getting back on track with personal finances and eliminating credit card and medical debt. In order to eliminate credit … [Read more...] about Get Rid of Debt With Experienced Bankruptcy Attorneys in Los Angeles
Bankruptcy Attorneys in Los Angeles that Help to Get Rid of Debt
Times are still tough for a lot of people. Every day, people face job loss, sudden illness, divorce or the death of a family member. No matter what causes personal hardship, it can be very difficult to get back on stable financial footing. Bankruptcy is a legal strategy for debt elimination. Individuals, business owners and corporations use bankruptcy to get reorganized and to stop creditors from calling. In order to get rid of debts get a fresh start, sometimes it is necessary to … [Read more...] about Bankruptcy Attorneys in Los Angeles that Help to Get Rid of Debt