Sep 06, · The Chapter 13 Mortgage “Strip” Only Chapter 13 gives you the possibility of “stripping” that junior mortgage lien off your home’s title. The key factor in qualifying is your home’s value. A second mortgage can be stripped from the home’s title if ALL of the home’s value is encumbered by liens that come ahead of the second. A Chapter 13 bankruptcy does permit you to eliminate junior mortgages/deeds of trust (also referred to as senior or junior liens) as long as the value of your house is worth less than what you owe Author: Justin Harelik. Second Mortgage Charge Off. When the mortgage charge-off applies to a second lien on your home, the process and consequences will be different from a default on your primary mortgage. The second loan is subordinate to your primary mortgage and therefore the lender cannot foreclose on your property without buying that first mortgage.
Related videosStrip Your Second Mortgage in Chapter 13 Bankruptcy - karacto.xyz San Diego Law
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You simply have to pay any second and third mortgages on your home or lose the home. The mortgage is a lien on your home, so you have to pay it or the mortgage lender will foreclose on your home. But you may be left owing the balance. And in any event, this is not a way to keep your home. Under this situation the second mortgage debt is effectively unsecured. Then that second or third mortgage is treated accordingly. This means that in your Chapter 13 plan you no longer have to make your monthly payments on that mortgage.
Instead, during life of your payment plan you pay it only as much as you can afford to pay. This means other special debts can be paid in full before that stripped mortgage debt receives anything. This usually means that you pay only pennies on the dollar on that mortgage debt.
Join Date Aug Posts 6. Can a Lender Charge Off a Debt After Chapter 13 Bankruptcy My question involves collection proceedings in the State of: Texas I have the title of my car and the bank is telling me return the title pay the balance in full or we will charge it off. Contract for 6 years I have 5 months to go.
Join Date Jan Posts 38, Re: Car Charge Off Ya lost me. Are you refusing to pay the balance on your loan? Re: Car Charge Off No I was in chapter 13 I called to get a balance cause I had not gotten one in 3 years I paid 32, and I have a balance of less than 2 thousand dollars.
They sent me the release and the title. I'm still sending payment but I don't know what todo. Re: Car Charge Off Did you pay off your bankruptcy? There is a lot of info missing which prevents anybody from giving you any real direction. If you were making payments under a chap 13, it doesn't matter what the lender says.
It's what the BK trustee says. Join Date Sep Posts 19, Re: Car Charge Off Charging off means absolutely nothing to you. Join Date Oct Posts 16, Re: Car Charge Off.