You Can Modify Or Lien Strip Your Wholly Unsecured Second Mortgage In Chapter 13 Under The Current Law
In this down real estate market and troubled economy, I think it is worth reminding homeowners of my blog post from this past March 09′ regarding lien stripping:
Homeowners with a second mortgage that is completely underwater may be able to have that lien treated as an unsecured claim in a Chapter 13 case.
If income and other assets are limited, this can mean paying unsecured creditors, including credit cards and the now unsecured second mortgage company, only a small percentage of what is owed. If a Chapter 13 plan is confirmed, the homeowner can save the home, prevent foreclosure, continue making regular mortgage payments to the first mortgage company, pay only a fraction of the unsecured debts (by paying the trustee through a court approved repayment plan), and save (discharge) possibly thousands of dollars in unsecured debts. For some homeowners, this effectively means that the legal fees and costs of filing a Chapter 13 case are free because they may save far more in debt than the case will cost.
If you are interested in learning more about whether you can save thousands and remove the 2d mortgage lien on your home, please call my office at (212) 764-7250 x 203 to speak with my paralegal to set up a free phone consult.