Second Mortgage Stripping

Even after bankruptcy, your home mortgage will be stuck to your house like a barnacle stuck to the hull of a boat. If you have multiple mortgages, however, there is a way to chisel that second or third mortgage off. This is called second mortgage stripping, or lien stripping, and it is something we can consider during your Chapter 13 bankruptcy.

Lien stripping is a difficult concept, but I will take the time to sit down and answer your questions so that you can determine if it is right for you. My Grand Rapids law office is a casual atmosphere where clients feel safe to explain their financial situation without fear of judgment. In my 25-plus years as a bankruptcy lawyer, I have seen many situations similar to yours and am ready to help you take the right steps forward.

Can You Get Rid Of A Second Mortgage?

In order to strip a second mortgage or home equity line during a Chapter 13, your house must be underwater. This means that the value of your home must be less than the amount you owe on your first mortgage.

Lien stripping works this way: If your first mortgage company decided to foreclose on your home today, it would receive all of the money from the home sale, and even that wouldn't cover the entire value of the loan. Your second mortgage company wouldn't receive a dime. Thus, that mortgage is considered "wholly unsecured debt" and can be discharged during Chapter 13 bankruptcy.

What About Your First Mortgage?

You cannot strip a first mortgage. Instead, we can work with your lenders to create a reasonable repayment plan that will allow you to pay your past dues. Our goal will be to manage your debts so that you can afford to pay for your mortgage and stay in your home.

Learn More About Lien Stripping And Chapter 13

I practice as a bankruptcy attorney because I care about helping people find peace of mind during difficult times. Debt is rarely planned. Whether you had to take out multiple mortgages because of medical bills or you could afford your mortgages until you lost your job, I'm not here to judge. I'm here to listen. Please call my law office at 616-259-4328 or send me an email to set up a free and confidential consultation.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.