Strip 2nd mortgage

[mgdebt]

Hi there,

Newbie here, but I have been researching for a few weeks now. I am in the same situation as another poster in that I want to file BK13 only if I can strip my 2nd. Otherwise, I will do a BK7. I do meet the requirements for BK7, but would like to keep my house if possible - in which my 1st mortgage is about fair market for a rental, and even a bit less.

anyway, I think I may be about 5k - 10K short on an appraisal (but haven't gotten one yet). does anyone know if the FMV would include selling costs? As it stands I owe 250K on 1st. Fair market is about 260K (Same model sold for 260 last month). But with commissions, closing costs, etc....It would definitely put me under the 250K needed, if I could include that!

any thoughts on this??

Thanks!!

[UpsideDown]

No, the second mortgage has to be "wholly unsecured", meaning the value of the house has to be less than you owe on the 1st, even if it's only by $1. Selling costs wouldn't count in that.

I wouldn't be too sure about the value just based on one that sold down the street. A good way to get a ballpark estimate would be to check your county property appraiser's website for the tax records on your house.
The only way to know for sure, though is to get a real appraisal. Call some appraisers and tell them you need a bankruptcy appraisal.