Chapter 13 Lien Stripping

San Diego Chapter 13 Lawyer – San Diego Chapter 13 Attorney – San Diego Lien Stripping

One of the most powerful aspects of a Chapter 13 bankruptcy is the ability to strip off a mortgage that is totally unsecured by the value of the property. Unfortunately, many people do not know about this aspect of the law so they end up making other financial choices that are really not in their best interest. We have seen liens of over $250,000 stripped off properties. When you are able to eliminate a debt this large you may be able to save your property until the housing market turns around.

DON’T LET YOUR CREDITORS GET YOUR HARD-EARNED MONEY.

Call the experienced foreclosure lawyers in San Diego at Thompson | Wedeking. We can file your bankruptcy for as little as $800.00. Call us today, toll free, at 1(888) 590-1773 or send us an email. We have helped thousands across Southern California, let us help you!

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It seems as though everyday there is a news story about the number of foreclosures in San Diego and California. Of course we all know about the sub-prime housing market and how that led to the increases in foreclosures. The bursting of the housing bubble has led to drastic decreases in property values. The decrease in property values has led San Diego individuals being upside down on their properties. In other words, they owe more on their properties than the property is worth. The good news is that a San Diego Chapter 13 lawyer can help.

The help from this dilemma is through the power Chapter 13 bankruptcy. In a Chapter 13 bankruptcy the court will possibly engage in what is called lien stripping. Lien stripping under a Chapter 13 can help you eliminate all junior liens on a property that are totally unsecured. This is quite a complicated process so you want to make sure you consult an experienced San Diego Chapter 13 lawyer for advice. A Chapter 13 bankruptcy is basically a reorganization of your debts that allows you to make one low monthly payment to the bankruptcy trustee as opposed to individuals payments to each of your creditors.

Lien stripping under a Chapter 13 bankruptcy can give you a host of options that were not available to you before. With your 2nd or 3rd mortgage gone you might be able to sell your home. When housing prices begin to rise again, you may be able to gain some equity and refinance. Also, and most importantly, as soon as you file you Chapter 13 bankruptcy, all foreclosure proceedings must stop. Just make sure that as soon as you receive a notice of default or notice of sale, you contact a San Diego Chapter 13 lawyer to discuss your options.

Let us go through an example of how the Chapter 13 bankruptcy lien stripping process works. You will only qualify for a Chapter 13 lien strip if your property value is less than what you owe. In other words, your property value must be worth less than your 1st mortgage. For example, let’s say your home is worth $450,000.00. When you purchased the home you got a first mortgage of $475,000.00 and a 2nd mortgage of $50,000.00 for a total encumbrance of $525,000.00. At this time you are upside down on the property $75,000.00. But, because your 2nd mortgage is totally unsecured by the value of the property a San Diego Chapter 13 lawyer will be to eliminate the 2nd mortgage. So now, you only owe $475,000.00 on the property and you are only upside $25,000.00. This can easily be made up when housing prices rise and you will be able to keep all the accrued equity.

Consulting a San Diego Chapter 13 lawyer about a lien strip is really perfect for those people that got 80/20 loans on the subject property. Further, you DO NOT have to be behind on your payments to qualify for a Chapter 13 bankruptcy lien strip. All you have to do is show the bankruptcy court that your 2nd or 3rd mortgage is totally unsecured by the value of the property.

We at Thompson | Wedeking are San Diego foreclosure attorneys dedicated to helping you get out of financial distress. If your debts are piling up and you are looking for a “fresh start” call a San Diego Chapter 13 lawyer that will fight for your rights to stop creditor harassment in San Diego. Bankruptcy fees start as low as $800.00. Don’t be fooled by big advertisers charging thousands of dollars. Call us TODAY at 1.888.590.1773 or visit one of our two websites at San Diego Bankruptcy Lawyers or Orange County Bankruptcy Lawyers or Riverside Bankruptcy Lawyers.

The Chapter 7 and Chapter 13 bankruptcy attorneys at Thompson | Wedeking are proud to serve clients in Southern California and in the South Bay, including San Diego County, Orange County, San Bernardino County, and Riverside County; and the cities of San Diego, Carlsbad, Chula Vista, Coronado, Del Mar, El Cajon, Encinitas, Cardiff-by-the-Sea, Leucadia, Olivenhain, Escondido, Imperial Beach, La Mesa, Lemon Grove, National City, Oceanside (San Luis Rey), Poway, San Diego, San Marcos, Santee, Solana Beach, Vista