Should I stop paying second for lien strip

[moneyproblem]

I have met with a lawyer and we are going to go forward with a Chapter 13 and try to strip my second mortgage. We have no equity in our home so we think it will work. I am wondering if I should stop paying my second. What if it is not excepted as a strip then I will be in default. How will I ever catch up. My lawyer says no problem we will just file a 7 then since we qualify. But I want to keep my home! What should I do?

[BornAgain]

Follow the advice of your lawyer.*





* If you have some indication that it's good advice.

[TetonWolf]

I have met with a lawyer and we are going to go forward with a Chapter 13 and try to strip my second mortgage. We have no equity in our home so we think it will work. I am wondering if I should stop paying my second. What if it is not excepted as a strip then I will be in default. How will I ever catch up. My lawyer says no problem we will just file a 7 then since we qualify. But I want to keep my home! What should I do?

Keep paying until you file. The motion will then take 30 days to strip the lien. I am going through this right now...didn't make my May payment...my attorney filed Ch 13 petition and motion to strip on 5/8. Save the payments just in case until relief is granted.

[AngelinaCatHub]

If you go 7, and keep paying on your first mortgage, they may just let you "pay through". On a second mortgage foreclosure, they must pay off the first mortgage to repo your place. This may just be "forgiven" in this day and time, and you certainly won't be the last. If you attempt to reaffirm, you may be stuck with both. As a poster above says, the lawyer is a pro, you are paying him for advice. Ask him about what I suggested though. 'Hub

[gettingby2008]

We stopped paying in Oct 08 and filed in Feb 09 on 5/7 the judge granted our motion. We were always going with chapter 13 and our attorney stated that if for some reason our motion was denied (highly unlikely in this market) our arrearages would then be added to our plan. Ask your lawyer they will know best how lien stripping is doing in your district.

[walkthaplank]

I stopped paying mine, just got the appraisal back and my first is under water by about 65K, so 2nd will be going bye bye.

In California Central District they apparently approve these as a matter of form as long as there is a real appraisal. My appraisal had trouble getting comps and had to expand into a much wider area. Too many foreclosures and houses sitting empty on the market for way too long. My attorney recommended paying the second until we at least had a favorable appraisal back, but I was reasonably certain that it would. All of the online eppraisal sites showed my house about 40k under water