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Can you lien strip a HELOC?

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    Can you lien strip a HELOC?

    We owe 189k on our 1st mortgage
    HELOC for 98K

    total = $287k
    Our home is worth $281K (Zillow)

    Can you strip a HELOC? IN the HELOC is our 2ndf mortgage from when we bought the house.

    Thanks.

    #2
    Originally posted by 95kindebt View Post
    We owe 189k on our 1st mortgage
    HELOC for 98K

    total = $287k
    Our home is worth $281K (Zillow)

    Can you strip a HELOC? IN the HELOC is our 2ndf mortgage from when we bought the house.

    Thanks.
    Yes, you can strip any "junior" lien on a property, when the lien is wholly unsecured. By wholly unsecured, that means the appraised value is less than the sum of all senior liens.

    Using your numbers, you would not be able to strip the 2nd lien. The appraised value of your home would need to be less than or exactly $189,000 -- the balance of your 1st mortgage -- in order to strip the junior liens.

    I would add, that I wouldn't trust Zillow for valuations. However, if Zillow is at $280K and your 1st mortgage balance is $180K, I'm pretty willing to bet the the value of your home still exceeds your 1st mortgage balance, making a lien strip unavailable to you.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

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      #3
      Zillow was WAY off for me. It keeps going up! It's now showing my house at $206K. It did show around $160K in March. The housing market is NOT good in my area so not sure how it's going up! My appraisal came in at $123K so zillow is not reliable.
      March 2009 - Filed Ch 13 April 2009 - 341 Meeting
      Sept 2009 - Confirmed April 2014 Plan completed May 2014 - Discharged!!

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