Removing a Second or Third Mortgage Through Lien Stripping
As housing values in and around Detroit have plummeted, homeowners have been left with mortgages that far exceed the value of their property. With the housing market in distress and a down economy, many homeowners are struggling to make payments on a second or third mortgage.
Homeowners can wipe out a second or third mortgage through the process of lien stripping. This is a court process in which the judge removes a second or third lien if the homeowner successfully completes the Chapter 13 bankruptcy process. It is not possible to remove a second or third mortgage through lien stripping in Chapter 7 bankruptcy.
Helping You through the Lien Stripping Process
I am attorney Martin Krall, and I can help determine if lien stripping is right for you. If it is, my law firm will help you through the lien stripping process, starting with filing a complaint to avoid the lien. It is necessary to show that the fair market value of your home is less than the balance due on your first mortgage. Under those conditions, the court will enter an order extinguishing the second or third lien if the Chapter 13 plan is completed successfully.
Contact a Bankruptcy Law Firm — Free Consultation
If you are struggling with a second mortgage, you can't afford to pass up a free consultation with an experienced bankruptcy lawyer. For more information about lien stripping, contact me today. My firm serves people in and around Macomb County, Michigan, in areas including Roseville, Warren, Sterling Heights, St. Clair Shores, and Clinton, Harrison, Macomb and Shelby townships.