Understanding Lien Stripping
With the current real-estate market, homeowners and property owners are stuck in a difficult circumstance. As the real-estate market declines, individuals have been left with underwater mortgages. This means that they owe more on their mortgages than their property is actually worth. When property owners are not able to pay the debt service or other costs that are associated with the property, they will need legal help and a serious answer to their debt problem. Lien stripping is a process that can eliminate second and third mortgage. This process can save you thousands of dollars and can remove the debt from mortgages.
For legal assistance with lien stripping, speak with a St. Petersburg bankruptcy lawyer from our firm at your earliest convenience!
Chapter 13 Bankruptcy and Lien Stripping
This is a program that is available in Chapter 13 bankruptcy and is part of the debt settlement process. There have been recent changes to the law which permit individuals to file bankruptcy under Chapter 13 and remove their second or third mortgages if their real estate has lost value. The elimination of debt from mortgages after the real-estate market has declined is the goal of lien stripping. There have also been other changes to the lien stripping laws which a St. Petersburg bankruptcy attorney can discuss with you. This is a process that is available throughout the country and can help individuals in a variety of circumstances save thousands of dollars from the mortgage on a home.
Restrictions on Primary Residential Properties
Under the present bankruptcy laws,individuals are not able to lien strip their original mortgage on a home or other property that is a personal residence. The reason is that the debt is secured by through the remaining property value. Through an appraisal of the current value of your property, it may be shown that the second mortgage is not secured because of the reduced property value. If this takes place, a judge can discharge that amount because it can be considered unsecured debt. As your St. Petersburg lien stripping lawyer, we can help you understand what to do in your present situation. Through a free case evaluation, we can discuss the details of what you will need to pursue your claim. By visiting our office, our firm can provide you with the resources necessary to eliminate your second or third mortgages.
Contact a St. Petersburg Foreclosure Attorney Today!
It is important to know that if your house gets foreclosed on, the earlier lien will have priority over second or third liens. In some cases, the second or third mortgages will not receive any money from the foreclosure which turns it into unsecured debt. Since these debts can be stripped, they can be wiped out after the discharge of your bankruptcy. At LeavenLaw, we are well acquainted with the bankruptcy process and can be by your side throughout every step of the process.
Contact us at your earliest convenience to find out how we can be of assistance to you.