What is meant by "stripping the second"

JackBondLove

banned

Bankruptcy Tutor

Joined: Feb 2010

Posts: 616

State: Louisiana
#1

What is meant by "stripping the second"

03-14-2010, 07:42 PM

Excuse me for my ignorance.
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momofthree

Senior Member

Bankruptcy Tutor

Joined: Jan 2010

Posts: 1678

State: California
#2

03-14-2010, 07:54 PM

Stripping the second means that if the loan is completely unsecured (home is worth less than the first mortgage balance), then the 2nd mortgage lien is removed from the property, and the loan becomes unsecured & paid out at the same value as all the other unsecured creditors.

Filed Chapter 13 on 2-28-10. 341 completed 4/14/10. Confirmed 5/14/10. Lien strip granted 2/2/11
0% payback to unsecured creditors, 56 payments down, 4 to go....
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