From Nolo's Bankruptcy & Foreclosure Blog

In a previous post, I discussed when a homeowner can “strip off” (remove) from a home a lien secured by a second mortgage in Chapter 13 bankruptcy. See Stripping Off Home Mortgages: An Introduction.

The debtor can only strip off the second mortgage if the property’s current value does not cover any amount of the second mortgage (or HELOC). The homeowner must provide evidence of the home’s value, especially if the lender opposes the lien strip off. In order to get the ball rolling, the homeowner may present an appraisal that was done for some other purpose (for example, to get a loan), the opinion of a local real estate broker, or a current property tax assessment.

Evidence of Property Value

However, ideally, the debtor should get more persuasive evidence before proposing the Chapter 13 plan or making a motion to strip the lien. Such evidence... Read More >>>
Foreclosure News | Foreclosure Blog