Can I Strip Off My Mortgage? – Wagner Law Office

Colorado Bankruptcy Law Attorneys

There are instances in bankruptcy where a homeowner may have the ability to actually “strip” off mortgage liens on his real estate. It is rare for this to occur but if there was ever a time in history for this to happen, that time is now. There are various requirements but it basically comes down to this . . . (1) the debtor must file a Chapter 13 Bankruptcy (NOT a Chapter 7 Bankruptcy!) and (2) the value of the home must be less than the amount owed on any senior liens on the property.

Can I Strip Off My Mortgage?What would your family benefit from getting rid of the entire amount owed on the second mortgage to your home? Imagine making an affordable monthly payment for a short time (3 to 5 years) and coming out the other side with no second mortgage to pay. Imagine lower monthly expenses and owning an asset that’s actually worth something. Would you be in a better position than you were before your bankruptcy filing?