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