AP for lien strip??

[julsmom]

Ok so we are so confused with this whole dang process....appears that 2nd mortgage has an attorney who tried to file proof of claim that says deed is secured so now it has gone to an AP...is that normally what would happen? I know we are trying to do a "lien" strip of the 2nd so maybe this is just what normally happens. I am ready for the whole thing to just be over with! uggh

[Pandora]

Hi julsmom - yep, its normal so no worries there. Now you'll have to prove that your house is valued less than what you owe on the 1st (appraisal works best) - your 2nd will probably get a CMA or BPO and will submit it as evidence in the AP. An actual appraisal usually trumps a CMA / BPO, and you can also provide any other information to support your claim that the house is upside down.

Your lawyer will go back and forth with the 2nd / other lawyer - contesting values, etc. Then you'll have a court date you'll have to attend re: the AP and strip. If before the court date the 2nd's lawyer says "hey - listen, value IS less than owed..." then they can agree to the strip, close the AP and you're onto confirmation. If not, then you go in front of a judge and he/she decides the value.

Ours took 7 months... just got confirmed last week - and we're also in VA.

[justbroke]

Whether a lien strip is done by motion or by adversary (complaint) is District specific. Anyhow, at least here in Florida, it's done by Motion. The real name of the lien strip is a "Complaint to Determine Secured Status and Avoid Lien". Fancy words for "lien strip". LOL This is all about proof anyhow.

If you only used a CMA (comparative market analysis) for your "proof", I'd say that you need to go get a professional appraiser that is licensed in your State. Also inform him what the purpose of the appraisal is for and that you may need to subpoena him to testify in a trial. This will cost more but you'll have your expert witness prepared to show up and defend his/her numbers!