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2nd mortgage and chapter 13?

In: Loans, Mortgages, Bankruptcy Law, Money Management [Edit categories]

Answer:

Under current bankruptcy law it is possible to eliminate or "strip" a 2nd trust deed (mortgage) through chapter 13 bankruptcy. A competent experienced bankruptcy attorney can accomplish this. There is a lot of misinformation propogated in this area often by persons attempting to take advantage of others. The basic requirement is that the value of the home is less than that owed by the first trust deed. The 2nd trust deed becomes an unsecured debt and no longer a lien on the home. When the chapter 13 is concluded any balance owed to unsecured creditors including the 2nd trust deed is discharged. Answer provided by a bankruptcy attorney with over 30 years of experience.

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First answer by IamLostRU. Last edit by Statestreetlaw. Contributor trust: 0 [recommend contributor ]. Question popularity: 2 [recommend question].

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