Current bankruptcy law allows judges to approve the loan modifications of the terms of certain debts. But is it possible to remove your second mortgage in bankruptcy?
As most of us know, your first mortgage is not allowed to be claimed. But not everyone knows that in the case of second mortgages, if the value of the property falls below the loan amount, homeowners potentially could reduce the balance of their loan amount to equal the current value of their property.
If the courts remove this 2nd mortgage, this is known as “stripping” the lien, “cram down” or “strip down.”
Within Chapter 13 Bankruptcy law, section 11 USC 1322 can potentially allow you to forgo your second mortgage, under certain circumstances. If your second lien on the whole is unsecured, then when the value of your home drops belong the first mortgage deed of trust, the second becomes wholly under secure, which can be negated through a Chapter 13 filing.
The lien stripping program is available for individuals desiring to reorganize their debt using Federal Laws under Title 11 of the United States Code. The mortgage removal program can only be used in the context of a reorganization, often referred to as Chapter 13.
Chapter 13 of the federal bankruptcy code allows bankruptcy court judges to reorganize an individual’s debt, but it does not give them authority to fundamentally alter a person’s primary home mortgage.
Section 506 of the Bankruptcy Code acknowledges that a lien is only a secured claim to the extent there is value in the asset to which it attaches. To the extent that the claim exceeds the value of the collateral, that portion of the claim is unsecured. In Chapter 11 or Chapter 13, even voluntary liens, such as mortgages and security interests, can be stripped down to the value of the collateral, with the exception of voluntary liens secured only by the debtor’s residence.
If you’re struggling with your mortgage on your primary home, it looks like you may now have some real home saving tools coming soon in the form of a B and K.
If you are in the state of California, please call the Law Offices of Fransen and Molinaro at (888) 756-2652 for a free bankruptcy consultation.
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[...] the original: Remove Your Second Mortgage in Bankruptcy Share and [...]
WE JUST GOT A CHAPTER 13 DISCHARGE A FEW MONTHS AGO,I SENT FOR A CREDIT REPORT AND I SAYS THE SECOND MORTGAGE IT IS DISCHARGED THROUGH THE BANKRUPTCY WE OWE 0 BALANCE I CALLED THE CREDIT BUREAU AND ASKED THE AND THEY TOLD ME IT WAS DISCHARGED WITH THE BANKRUPTCY AND WE DID NOT OWE IT I CALLED THE KEY BANK AND THEY SAID WE DID OWE IT . OUR LAWYER DIED ABOUT 4 YEARS AGO.I CALLED KEY AND THEY WANTED TO GIVE ME A LOWER PAYMENT AND WAS TO CALL BACK AND NEVER HEARD FROM THEMI AM TRYING TO FIND OUT WHAT IS GOING ON NO CALL BACK I NEED HELP.
Email me in regards to your bankruptcy. I am a mortgage broker and in a round about way credit counselor. Email me if you are still having an issue, I will try to help you answer your question.
Yourbroker4life@hotmail.com
[...] Remove Your Second Mortgage in Bankruptcy [...]
I’m about ready to file a joint bankruptcy with my wife.
I ‘m on unemployment right now, can I file a chapter 13 bankruptcy ? or will the courts not allow unemployment income as a form of revenue to be able to distribute to any creditors.
I think a chapter 13 would be best for us so we might be able to remove our second home loan.
We owe (first,second) 178,000+120,000=298,000. present value at best 160,000
thank you, Gary.
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I am geting divorced. We have two mortgages on the house. I pay the first one and husband pays the second one. The second one I am afraid I will also get stuck with because I am keeping the house. Is there anyway to get that out of my name and he can declare bankruptcy on that. It was credit card debt that he consolidated into a home equity loan.
I was the victim of Identity Theft going back to 2006. I was notified by Bank of America, TJ Maxx and Courts of Mass. I knew it, but it is a long story but after going through everything, and receiving packages at my home with jewelry inside, I made a big mistake in order to avoid APR’s and returned the ‘crap’. Evidentity someone got my numbers and used every credit card I had, and I had a lot of available credit because for 30 years, I was never late. My credit tanked but that is another lawsuit because the banks where I called them and gave them fraud documentation, police reports, etc. debited, credited, debited, credited, so many times, I couldn’t figure it out. I just know in 4/2007 I drove to Knoxville, TN with 14,000.00 worth of jewelry and gave it to them. They made up a database with every order, the date ordered, and received back, the amount, it was unreal. They also gave me the last 4 digits of cards used and there were about 20. Long story short, I had money put away, I am on disability however I sell on ebay and do rather well. I am so tired of working, listening to these loan mod vultures, I have no time at all to myself and I am not upside down on my mortgage so I am sure the bank would want this house. In my situation, where I can fudge my income from ebay and my social seciruity income is direct deposited, I am just burnt out, and I just need someone who isn’t out for a buck and maybe would tell me truthfully if I should hire someone or not.
Thanks
Pam Bonds
Pam- You are an idiot. Publicly posting to commit fraud. You do not deserve a modification.
Overheard at alliance bancorp and sue the bath room sink off wellsfargo bank – Pam bond – and roy ! Both comments yall made . Has giving me a smile – u can’t sit down , and think how mad I’m am , rite now . I’d fraid fraud . Is hell to a vitim , when u have to fight for your self no help . U have to file all of these charges and hope to get a ans back when u no u right . And they are wrong . I never forget that day close to what I went for my rights and civil right , gloria jean mayes and her pack of crooks and robber , before the sherff of fulton county took her back to the holding tank . Michael I have all of your stuff -10 millions documents she took .and then out of no where , he lawyer , which was a public defender , said no , don’t tell him nothing . From that point on never heard nothing again . Could u see that reporting”1st degree id fraud”and” theft” , that is real , sense” 2002″ all the way up todate 2010 . Wow ! What have I been doing sense 2002 ? ? ? ?
Overheard at alliance bancorp and sue the bath room sink off wellsfargo bank – Pam bond – and roy ! Both comments yall made . Has giving me a smile – u can’t sit down , and think how mad” I’m am , rite now . I’d fraid fraud . Is hell to a vitim , when u have to fight for your self no help . U have to file all of these charges and hope to get a ans back when u no u right . And they are wrong . I never forget that day close to what I went for my rights and civil right , gloria jean mayes and her pack of crooks and robber , before the sherff of fulton county took her back to the holding tank . Michael I have all of your stuff -10 millions documents she took .and then out of no where , he lawyer , which was a public defender , said no , don’t tell him nothing . From that point on never heard nothing again . Could u see that reporting”1st degree id fraud”and” theft” , that is real , sense” 2002″ all the way up todate 2010 . Wow ! What have I been doing sense 2002 ? ? ? ? 10 million paper never touch or red 1 of them .patrick mayes gloria mayes . I can’t belive they did this .
Ex of the will or the living trust aka power of attorney , what kind of power of attorneys leave , their , people on the street with nothing , freddie mac ,ginger mae , fanni mae , silver state bank , zionbancorp , fraud and fraudulents owner on that list too . Peole make sure u have a real living trust , ya trust of ya companies and assets , will robbed ya kids . Is congress and the law maker a do something about this asap . This too much wrong doing .
I thought pam was a idiot too , but now I see what’s the vitim saying , somebody stole his credic cards numbers , and started ordeing all the crap , tring to /get the crap they order from his address to try make the scam look real , hahahahahah , by just getting it place . But he so dam at home , never go nowhere cause he has a ebay tpye of work , they , couldn’t complete the scam , pam was always their to sign for the stuff . So . Pam just return the crap , tag as fraud , make a police report , give it to ya card holder tag , as fraud . Fraudulent orders , wow . Luckly pam work at home they would have gotten u for that 14,000 . So u should get ya 14,000 back after u made the police report under fraud. Or it mite take a while . U good . It look like that grimes guy a need a fbi agent .
I thought pam was a idiot too , but now I see what’s the vitim saying , somebody stole her, credic cards numbers , and started ordeing all the crap , tring to /get the crap they order from his address to try make the scam look real , hahahahahah , by just getting it.from her place . But he so dam at home , never go nowhere cause he has a ebay tpye of work , they , couldn’t complete the scam , pam was always their to sign for the stuff . So . Pam just return the crap , tag as fraud , make a police report , give it to ya card holder tag , as fraud . Fraudulent orders , wow . Luckly pam work at home they would have gotten u for that 14,000 . So u should get ya 14,000 back after u made the police report under fraud. Or it mite take a while . U good . It look like that grimes guy a need a fbi agent . They robbed u blind , like a.little kittin , the cops got to stop that , if they don’t stop that fraud u have no chance with nobody else , I didn’t a p giannini , was president of bank of america , so mr grimes is his sole air . How do that go ?
Ya I did all that stuff my self , reported fraud to, fdic , and the fed reserve bank , and to the fannie mae , inc . Hell fannie mae was trying to sell me my own stuff . They wouldn’t never give me a loan . Wonder why . , well one worker , at my washington mu , co , told me to go to my bank of america co for a loan . Its look if tho the worker are in on the fraud with those pest too . Dam my bear stern companies , relly messed up . They need to give mr harris that house back . That look bad . That looks badder than me cause u can’t see me . But they caught mr harris , jpmorgan forcloser fraud .
Can somebody tell the theves to exit my building .
Webster bank fraud too .