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Stripping second mortgage after filing Chapter 7 bankruptcy.

Posted on: 12th Feb, 2010 06:25 am
after not having his contract renewed, my husband and i filed for and were granted chapter 7 bankruptcy. we kept our home and continue to make monthly payments. we are in a home modification program. our home is worth half of what we paid for it. we owe $360,000 on first mortgage and $90,00 on second mortgage. the house is worth $250,00 at best. we cannot afford the second mortgage payment. we live in florida. is there any way to strip this second mortgage as it is based on value that is no longer there?
Hi pmf,

Chapter 13 can help you in stripping off second lien from the property if you do not have equity in it. To know more about lien stripping, check out the given page:
http://www.mortgagefit.com/bankruptcy/chapter13-lienstripping.html

If you do not want to file bankruptcy, then you will have to speak to your lender and check out if he can forgive the dues or give you a better payment plan to pay off the loan.
Posted on: 12th Feb, 2010 11:53 pm
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