In some cases, you can get rid of second or third mortgages on your home. This is called "lien stripping." Here’s how it works. If you don’t have enough equity in your home to secure the second or more junior mortgages, then the bankruptcy court can "strip" the liens securing the mortgages and reclassify the debt as unsecured.
WASHINGTON – A unanimous Supreme Court ruled Monday that homeowners who declare bankruptcy can’t void a second mortgage even if the home isn’t worth what they owe on the primary mortgage.
In Bank of America, N.A. v. Caulkett, Case No. 13-1421 (June 1, 2015), the United States Supreme Court ruled that a second mortgage on an an "underwater" home – one with a mortgage balance exceeding its current value – cannot be voided during bankruptcy.
WASHINGTON – The Supreme Court said Monday it will decide whether homeowners who declare bankruptcy can void a second mortgage if the home’s market value.
As noted in Omega’s press release issued on March 7, 2018, Orianna, also known as Four West Holdings, voluntarily filed Chapter 11 in US Bankruptcy Court in Dallas. compared to expected at $2.64. I.
Thousands of Florida mortgages could be at risk because of insurance abuse If a borrower does not pay the lender-placed insurance policy premium, they could be at risk of foreclose. Concern have also been raised over whether the growing use of lender-placed insurance is "reverse competition," where the lender chooses the coverage provider and amount, yet the consumer is obligated to pay the cost of coverage.
On November 21, 2014, the Trustee filed an adversary proceeding in the bankruptcy court against the Debtor, Belmonte, and Thompson, seeking to avoid the Second Mortgage. to provide insights that.