Mortgage & Lien Stripping

Understanding Lien Stripping – Get Rid of 2^nd & 3^rd Mortgages

The housing economy is still struggling in California. Many homeowners have needed to take out second and sometimes third mortgages to afford their home. But what happens if the market drops and a homeowner finds him or herself underwater?

The Law Office of Raymond J. Seo is dedicated to helping consumers eliminate their debts and find financial freedom through bankruptcy and other legal methods. Do you have a second or third mortgage out on your home? Are you filing for Chapter 13 bankruptcy? You may be eligible for a process known as "mortgage stripping" or "lien stripping."

What is an underwater mortgage?

Underwater mortgages occur when a homeowner is paying on a mortgage that is worth more than the value of their home. This means that your mortgage is $100,000 "underwater."

For example let's say the following is true:

• You have one or more mortgages totaling $300,000
• Your home value dropped to $200,000

What is lien stripping?

Lien stripping is available to homeowners who are filing for Chapter 13 and have multiple mortgages out on their home, but their home is worth less than their largest mortgage.

For example, let's say the following is true:

• You have a $250,000 mortgage
• You have a second $50,000 mortgage
• Your home value dropped to $200,000

If this were true, you would be eligible to have your second mortgage thrown out or "stripped" because your largest mortgage is worth more than the value of your home.

What are the benefits of mortgage stripping?

"Stripping" extra mortgages or liens reduces your debt on your home, making the Chapter 13 bankruptcy process simpler and reducing the amount of debt that you have to repay / discharge.

Learn More by Consulting a Cerritos Bankruptcy Lawyer

Contact the Law Office of Raymond J. Seo right away to discuss your case for free with a compassionate and knowledgeable attorney. We never sacrifice service or results when handling our clients' cases.