Today, many homeowners find themselves “under water.” Their homes are worth less than what they owe on them. Instead of building up equity, the monthly payments put homeowners deeper in the red. The situation is made worse when the homeowner has taken out a second mortgage or a home equity line of credit. In such case, a little known bankruptcy provision referred to as lien stripping can help homeowners completely eliminate the lien from a second mortgage or equity line while keeping their house.
Orange County Lien Stripping – Hallstrom, Klein & Ward LLP
Serving Costa Mesa, Rancho Santa Margarita, Laguna Hills, Garden Grove, Villa Park, Stanton
Get Rid of Your Second Trust Deed
Lien stripping is done as part of Chapter 13 bankruptcy. In fact, this is one of the biggest advantages of filing a Chapter 13 bankruptcy. Through lien stripping, you may be able to wipe out a junior lien on your home. However, many consumers do not know about this provision, and not all bankruptcy attorneys offer it. At Hallstrom, Klein & Ward LLP, we have considerable experience with this procedure, and can help you eliminate your junior liens if appropriate.
To remove a second mortgage, you must file a separate action in the Bankruptcy Court and show that the value of your home is below the amount you owe on your first mortgage. If the court agrees, you may be able to eliminate the security interest of your 2nd or other junior mortgages. For example: if your home is worth $400,000 but you owe $450,000 on your first and a $100,000 on a home equity line, then a chapter 13 bankruptcy may enable you to eliminate the $100,000 lien from your home equity line.
Discuss Your Situation with an Experienced OC Lien Strip Attorney
While lien stripping sounds easy in theory, it can be a difficult task in real life. Papers have to be filed, house value has to be proved, and follow-up communication with the court might be necessary. To ensure that you take full advantage of this valuable consumer protection mechanism, you should discuss a possible lien strip in OC with a skilled bankruptcy attorney. Contact us today for a FREE consultation by calling 949- 450- 8500. Hallstrom, Klein & Ward LLP is home to several highly skilled Orange County lien strip lawyers. They can help you determine if you could remove your second or third mortgage through this procedure. For your FREE consultation, contact them at 949 - 450 - 8500.