Modify Your Debts with Lien Stripping
Are you aware that you might be able to remove a second or third mortgage or equity line during Chapter 13 bankruptcy? Recently, federal bankruptcy law was changed to allow for lien stripping, the process of modifying overwhelming secondary mortgage debts.
If you have multiple mortgages and are considering your options for bankruptcy, ask the Michigan bankruptcy lawyers at the law firm of William C Babut PC, about mortgage lien stripping. Call us at (734) 485-7000 for a free consultation.
Cutting-Edge Bankruptcy Lawyers
At our law firm, we help our clients find solutions to overcome difficult financial situations. We have focused our practice on bankruptcy since 1991. This focus allows us to stay current on the law and provide our clients with skilled bankruptcy representation. We have completed numerous lien strippings since the law went into effect, saving tens of thousands of dollars for our clients.
How Does Mortgage Lien Stripping Work?
In order to strip off a second or third mortgage lien, you must owe more on your first mortgage than the value of your house. Thus, we ask our clients three simple questions to determine if they qualify for lien stripping in Chapter 13 bankruptcy:
- How much is your house worth?
- Do you have a second mortgage or equity line?
- Do you owe more on your first mortgage than your house is worth?
Any mortgage or equity line you wish to strip off must be wholly unsecured. For example, if there were multiple mortgages on a home worth less than the amount of the first mortgage, and the first mortgage company foreclosed on the home, only the first mortgage company would receive money from that foreclosure. Thus, any additional mortgages would be wholly unsecured, because they could not share any of the proceeds from the sale home. A first mortgage is always secured, assuming the house retains any value, and cannot be stripped.
Determining the Value of Your Home
One of the most difficult parts of the lien stripping process is determining the worth of your house and its tax value. You and the mortgage company/bank will have appraisals done, and the appraisers will, most likely, come up with different numbers. We help you demonstrate the value of your home in court.
Contact us for Quality Bankruptcy Litigation at Affordable Prices
Our Michigan bankruptcy attorneys understand that you are in a tough economic situation and that hiring a lawyer may seem unaffordable. That is why we offer a flat fee for most bankruptcy cases and work with our clients to develop payment plans and fee arrangements that work for their budgets.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.