I now know from speaking with several attorneys as well as forum members that it's highly unlikely my first lien holder will file an unsecured claim for any deficiency incurred as a result of me surrendering my home under Chapter 13. However, my second lienholder is technically 100% unsecured as a result of a steep decline in the home's value.
For those in a similar situation who have filed Chapter 13 or are in the process of filing, are you finding that the second lienholder is filing an unsecured claim up front, or are they just filing secured claims and allowing the property to be surrendered in "full satisfaction of the debt" like the primary lien holders are?
I believe the tricky part here is that a primary lien holder that is not 100% underwater cannot file a claim for the unsecured portion of the debt because they can't prove what the actual deficiency will be until the propery is actually foreclosed and sold while a secondary lien holder can easily prove that the entire amount of their note is 100% underwater with an appraisal and therefore file an unsecured claim. Am I reading this right?
For those in a similar situation who have filed Chapter 13 or are in the process of filing, are you finding that the second lienholder is filing an unsecured claim up front, or are they just filing secured claims and allowing the property to be surrendered in "full satisfaction of the debt" like the primary lien holders are?
I believe the tricky part here is that a primary lien holder that is not 100% underwater cannot file a claim for the unsecured portion of the debt because they can't prove what the actual deficiency will be until the propery is actually foreclosed and sold while a secondary lien holder can easily prove that the entire amount of their note is 100% underwater with an appraisal and therefore file an unsecured claim. Am I reading this right?
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