Getting Rid of Your Second Mortgage or Home Equity Line of Credit ("HELOC")
Some new, exciting and innovative changes in Bankruptcy Law now make it possible to file for bankruptcy and have the court determine that a second mortgage or a home equity line of credit (“HELOC”) is not supported by the value of the property and therefore must be treated just like a credit card debt.
If your home’s value is less than the balance of your first, or primary mortgage, it is now possible to force the second mortgage or HELOC lender to release its lien and accept only partial payment of the balanced owed and, under certain circumstances, receive no payment at all.
The process of accomplishing the removal of a second mortgage or HELOC is call “lien-stripping.” Lien-stripping is a way for you to get back a large portion of the equity you lost when the real estate market bubble burst and allow you to stay in your home with some certain prospect that someday your home will actually be worth more than what you owe!
The legal and factual basis of obtaining a lien-strip is very particular which involves the filing of specific form motions, providing admissible evidence of value and balances due, and frequently involves a law suit against the lender and an evidentiary prove-up.
The law office of Derrick B. Hager, P.C. has successfully stripped off second mortgage and HELOC liens for dozens of families. We know what to do and how to do it.