Lien strip from a formal primary residence?

[addision]

Ugh! I rented out my primary residence (A) for three months from November 2011 through January of 2012. During this time I moved into my rental property (B). I then moved back into my primary residence (A). Other than that short 3 month period of time I have lived in my primary residence for the past 15 years.

I reported that I converted my primary residence to a rental for three months on my tax returns for tax years 2011-2012. Will I be disqualified for doing a lien strip because my rental property was my primary residence for a short period of time?

I was searching the web and I remember seeing something similar and I have been concerned ever since. I don't know where that web page was so I can't go back to it.

[justbroke]

That rental would not disqualify you. In fact, most Districts look to the original purpose for the loan to determine if it is/was a primary residence. In other words, the one that you purchased as your primary residence could do the lien strip. It really depends on whether the lender challenges the lien strip, but I have rarely read about a lender challenging a lien strip, and even in the 1 or 2 cases where I have seen a lender challenge, the lender backed off before the hearing date. (I'm speaking form direct and indirect experience in Florida.)

[LadyInTheRed]

I think what is relevant is your primary residence on the date you file.

You can do a lien strip on a primary residence in a Chap 13 as long as the balance on the superior lien(s) is equal to or higher than the value of the home.

[despritfreya]

What are your plans for the rental (property B)?

Agree with the above. Does not matter so long as there is NO equity in the property after considering what is owed on the senior liens. If there is any equity, cram down not possible as property A is your primary residence (and assuming lender is not secured by anthing other than property A).

Des.

[addision]

Well I hope it goes well. Both properties are negative equity. I only have a second on the rental property and I will hopefully be in a modification plan this week. I had a state tax lien I had to clear up from 2007. I didn't have a tax liability and so it finally got removed. But that held up my modifications.

Once the modifications are completed I am going to file.