Comments on Legal Tips & Commentary: Removing a Second Mortgage Through Bankruptcy

I currently have a 1st and 2nd loan on my house. ...

2011-11-03T06:48:18.068-07:00

I currently have a 1st and 2nd loan on my house. After declaring Bankruptcy i know longer recieved bills from my 2nd mortgage loan. Should i be concerned? my 1st mortage is 160,000 and my 2nd is 40,000, my home is currently worth according to the auditor 165,000.

In order to remove a second mortgage from your hom...

2011-08-07T22:46:20.386-07:00

In order to remove a second mortgage from your home you must either file a lien stripping motion or adversary case as part of your Chapter 13 plan. Although you must propose it as part of your Chapter 13 plan, you must also file a separate motion or adversary proceeding to have the 2nd mortgage treated as unsecured. In the Central District of California, the bankruptcy court may allow the debtor's testimony and declaration as proof of the value of the property. This avoids the debtor having to pay costs to obtain an appraisal.

Removing a second mortgage through bankruptcy is a...

2011-07-19T19:47:20.086-07:00

Removing a second mortgage through bankruptcy is a very usefull provision allowed by the bankruptcy code, I use it monthly to remove numerous second mortgages on overburdened debtors allowing them to remain in their homes.

Isn't a Chapter 13 Bankruptcy a negative/adver...

2011-06-01T15:26:37.714-07:00

Isn't a Chapter 13 Bankruptcy a negative/adverse item on someone's credit report though? It can adversely affect the Fico score.

A few months ago, my wife and I refinanced our hom...

2011-03-21T13:39:06.971-07:00

A few months ago, my wife and I refinanced our home loan from 5 7/8 to 4 5/8. We also added money to the pot to get it down to conforming. We'll recoup the difference in a few years from the reduced mortgage payment.

We had enough cash on hand to actually pay the house off, but I'm doing way better in the stock market than the 4-5/8's rate we have. Also, we needed the cash to make a down payment on a second home, where my in-laws will be living, and to put enough into a bond fund to make the second home's mortgage payment.

As far as real estate taxes, I voted for Prop 13 in CA umpteen years ago. Its kept our property taxes down, and thus state spending down. Without it, I'm not sure anyone could afford to live in CA. (Renters pay property taxes in the form of higher rents.)

we bought our house three years ago for 384,000 we...

2010-03-04T13:27:28.116-08:00

we bought our house three years ago for 384,000 we have a second on the house that is 76,000 with a ballon payment could we have the second discharged in bk and keep our home the first is not the problem the second is our house is now worth 250,000

I have a 1st of 694K, a 2nd of 173K. Have not been...

2010-03-03T22:38:57.738-08:00

I have a 1st of 694K, a 2nd of 173K. Have not been late and have not missed payments, been in home since July 06. Tax assessor says value is $493K, zillo range 525K to 565K.

I make around $170K/yr, got separated 6 months ago and feel the sequeeze. This is not sustainable.

Am I a Chapt. 13 candidate?

Thank you.

I currently have a first mortgage of 172K and a se...

2010-01-26T17:41:14.197-08:00

I currently have a first mortgage of 172K and a second of 165K and my value is around 260K -280K. I am having to borrow money from family members to pay for the second mortgage. Can I still file a chapter 13 on some or all of my second to atleast bring down the amount that I owe? If so is this something you can handle?

In reply to anonymous with the HELOC issue, I seen...

2009-10-31T10:58:54.917-07:00

In reply to anonymous with the HELOC issue, I seen no reason why you couldn't file bankruptcy now on the debt. The automatic stay would stop the lawsuit immediately and it sounds like a fairly routine issue to me.

Determining your ultimate eligibility would still require a full review of other information such as your assets and income, but you haven't described anything that causes me any concern.

i have a scenario for you. i short sale'd rent...

2009-10-29T00:53:08.209-07:00

i have a scenario for you. i short sale'd rental property that i had a HELOC on. WF (the 2nd TD) approved the SS and agreed to taking $5,000 (total balance was $50k+). now 6 months later i receive a summons saying i'm being sued for the original balance...doh! is chapter 13 too late? are you verse enough in the matter to represent me?

thanks!

If the fair market value of the house is less than...

2009-06-20T22:56:50.980-07:00

If the fair market value of the house is less than the amount owed on the first mortgage, then the second mortgage is unsecured for the purposes of a lien strip in a Chapter 13 bankruptcy. The owner would need to file a Chapter 13 bankruptcy and then initiate legal proceedings within the bankruptcy to have the judge set the value of the property and remove the lien.

How would you define an unsecured 2nd lien? Would...

2009-06-20T19:59:55.700-07:00

How would you define an unsecured 2nd lien? Wouldn't most 2nd liens be secured unless they were private loans, i.e. a family loan? Thanks for your blog!