What Will Happen to My Second Mortgage During Bankruptcy?
What Will Happen to My Second Mortgage During Bankruptcy? If you are considering financial ruin, you've got a 2nd mortgage on your private home, and you live in New York, you want to invite your financial ruin lawyer approximately lien stripping. What is Lien Stripping? Lien stripping is part of a technique that transitions your 2d mortgage from a secured loan to an unsecured loan. This choice is best available under sure circumstances: You are affirming Chapter 11 or 13 Bankruptcy. Lien stripping is not allowed beneath Chapter 7.* The total assessed cost of your house is LESS than the cost of your first loan. For example, if your house is presently well worth $four hundred.000.00, and you owe $450.000.00 on your number one loan and $50,000.00 for your 2d, you will be capable of have your 2nd loan stripped. How Does This Process Work? As part of the debt restructuring method (Chapters eleven and 13), your 2d loan may be changed into an...