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Wipe off second mortgage

Posted on: 09th Apr, 2013 08:55 pm
hello everyone… i filed chapter 13 bankruptcy and have found now that my property is worth more than my first mortgage. in such a case will i be able to wipe off my second mortgage?
Hi Sail,

Yes, the option of lien stripping is applicable in case of Chapter 13 only when you donhave the required equity in your property to pay off the mortgages. As your property value is more than the 1st mortgage that you owe on it, the property may be sold off to pay off your first mortgage and part of your second mortgage.

Thanks
Posted on: 09th Apr, 2013 09:08 pm
You can consult with your attorney regarding the prevalent property exemption law in your state of residence.
Posted on: 10th Apr, 2013 05:14 am
Hi Sail!

Welcome to the forums!

To know all about lien stripping, as mentioned by James, you can take a look at the given page: http://www.mortgagefit.com/bankruptcy/chapter13-lienstripping.html .

Feel free to ask if you've further queries.

Sussane
Posted on: 10th Apr, 2013 07:50 pm
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