California Bankruptcy Lawyer Assisting Individuals and Businesses with Mortgages and Lien Stripping
In today's economy, it is not uncommon for a person to have a mortgage on a home or commercial property that is worth only a fraction of the actual mortgage amount. In these difficult situations, you do have options. It may be possible to remove this second mortgage from the property by filing for Chapter 13 or Chapter 11 bankruptcy.
At the Law Office of Lawrence L. Szabo, in Oakland, California, we can help. Our founding attorney, Lawrence L. Szabo, has the knowledge and experience to effectively assess your situation and determine whether lien stripping is possible in your situation. Contact us to schedule your free initial consultation.
Cram Down Mortgages
A second mortgage is considered "stripped" or "crammed down" when it is removed during Chapter 13 bankruptcy or Chapter 11 bankruptcy proceedings.
Consider the following illustration: a first mortgage ($350,000) and a second mortgage ($150,000) are secured by real property that has decreased substantially in market value (from $350,000 to $200,000). If the property owner subsequently files for Chapter 13 bankruptcy, the first lender's senior lien ($350,000) will only be secured up to the actual value of the property ($200,000). The second lender will technically have nothing left to secure their junior lien ($150,000) and it will therefore be "stripped."
Depending upon the equity in the home and other factors, stripping a lien may not be possible. Understanding this process and its limitations can prove extremely difficult without the assistance of an experienced lawyer.
If you are unsure whether a cramming down a mortgage is possible in your situation, we can help. Attorney Lawrence L. Szabo has more than 25 years of experience handling all types of bankruptcy matters for people throughout Alameda County and Contra County. He will carefully assess your situation and take the time to help you understand all of your debt relief options.
Contact Us
To learn more about stripping a lien from your property, contact us any time for a free initial consultation with Attorney Lawrence L. Szabo.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
