Lien Stripping

[goldnsun]

We filed a few weeks ago and have 341 in about 2 weeks. On the data site, it stills shows our second as unsecured payback 100% as of a few days ago. I was wondering when it is that the attorney files the motion to have it converted to unsecured. All the paperwork shows that it will be motioned to change it to unsecured but I just wondering when that actually happens. Before or after the 341? Our attorney says they just go off Zillow and for us, we are about 40,000 under what is even owed on our first mortgage and he says most cases in our district as of late, haven't even gone to court meaning the motion just gets granted without any trouble here in California. Will we be notified of a hearing if one comes about? I don't believe we even have to attend it, just our attorney. Any info would be appreciated. Thanks!

[goldnsun]

Anyone? ;)

Basically I just want to know if either before or at the 341 meeting, we know that the lien has been stripped. Just wondering the order of things.

[pcn]

From my understanding it isn't "stripped" until the bk is discharged at the end of your plan. It is changed from secured to unsecured credit and you will pay them the same way that you pay the other unsecured creditors during the life of the plan, whatever that % may be.

[justbroke]

Here's the scoop (you can also read my Blog or HHM's very excellent write up on the lien stripping process https://www.bkforum.com/node/32398).

Your lawyer will file a motion to strip lien and determine secured status before confirmation. Usually, these sorts of things are determined after the 341 but before or at the final confirmation hearing.

Also, as pointed out above, while the lien is technically considered stripped as of the date of the Order... it isn't really official unless you get a discharge in the Chapter 13. Any case dismissal or conversion to a Chapter 7, will cause the liens to be valid once again.

[goldnsun]

Thanks

That gives me a better understanding of the process, thanks for the replies

[albacore44]

We filed a few weeks ago and have 341 in about 2 weeks. On the data site, it stills shows our second as unsecured payback 100% as of a few days ago. I was wondering when it is that the attorney files the motion to have it converted to unsecured. All the paperwork shows that it will be motioned to change it to unsecured but I just wondering when that actually happens. Before or after the 341? Our attorney says they just go off Zillow and for us, we are about 40,000 under what is even owed on our first mortgage and he says most cases in our district as of late, haven't even gone to court meaning the motion just gets granted without any trouble here in California. Will we be notified of a hearing if one comes about? I don't believe we even have to attend it, just our attorney. Any info would be appreciated. Thanks!

Zillow ?? I was always under the impression a full appraisal would be required. I'm up for that. If you don't mind, what district are you in ??

[justbroke]

Zillow ?? I was always under the impression a full appraisal would be required. I'm up for that. If you don't mind, what district are you in ??

In most Districts, only a real professional appraisal goes unchallenged.

Sure, you can use Zillow or a CMA (comparative market analysis). However, if the lender challenges the valuation, then you need real defensible evidence of value. The only thing that trumps a licensed residential appraiser, is another licensed residential appraisal, and in extreme cases, testimony during a trial by a licensed residential appraiser!