What will happen to the HELOC if I file?

[overspent]

House just got appraised at 290,000. If foreclosed first mortgage holder will probalby get 240,000 (balabce 254,000). Owed HSBC on the HELOC 50,000. Will this become unsecured if I file and gone?

Thanks for all your help.

[lrprn]

House just got appraised at 290,000.

Who appraised it? If it was done by your county for property tax purposes, then it's an inflated value.

Go look at 'comparables' (houses in your neighborhood that are comparable to yours) that have sold in the last three months to see what they sold for. That will be a far more accurate 'guesstimate' of your home's value.

If foreclosed first mortgage holder will probalby get 240,000 (balabce 254,000). Owed HSBC on the HELOC 50,000. Will this become unsecured if I file and gone?

Let's see if I have this straight.....your home is worth (you think) $290K. You owe $254K on your first mortgage and $50K on your second.

If this is the case and your house really is worth $290K in today's housing market, then you can't lien-strip your second mortgage (the HELOC) becuase the house is worth more than $254K - the value of your first mortgage.

There's a very helpful sticky about lien stripping right here in the Ch 13 forum area - you will learn a lot about how lien-stripping really works by reading it.