Lien Strip on a Second Home

[simon2020]

Is it possible to do a lien strip on a second home? There is only one mortgage on the 2nd home that is out of state.

At what point in the CH.13 process, does the Trustee begin to go through the lien stripping?

What would qualify my second home as for a lien strip?

Thanks.

[justbroke]

Is it possible to do a lien strip on a second home? There is only one mortgage on the 2nd home that is out of state.

At what point in the CH.13 process, does the Trustee begin to go through the lien stripping?

What would qualify my second home as for a lien strip?

Thanks.

You can't lien strip it, but you may be able to cramdown the loan.

A lien strip removes the lien, and that's not going to happen becuase I'm sure there's at least $1 of value in the home which secures the loan.

A cramdown, allows you to bifurcate the secured claim into two components; a secured component and an unsecured component. All your lawyer needs to do is Motion to determine secured status.

This is allowed because 1322(b)(2) does not protect property which isn't your homestead.

FYI, it's not the Trustee who asks for cramdown (or lien strip). It's up to you to request it through your lawyer.

If you are keeping the second home as a vacation home, you are going to have to pay the unsecured creditors the appraised value of the home to stay in a Chapter 13. This could make your plan a 100% plan.