We have successfully removed a second mortgage from the residence of one of our clients who was involved in a Chapter 13 bankruptcy proceeding.
Shortly after filing the Chapter 13 bankruptcy petition, our attorneys filed a motion with the bankruptcy court to determine the secured status of a second mortgage and to strip the lien from our client’s residence. The motion alleged that the amount of the first mortgage was greater than the value of the residence and, therefore, the second mortgage should not be allowed as a secured claim and should be “stripped off.”
After several court appearances, the motion was granted by the bankruptcy court, and upon entry of discharge, the second mortgage will be deemed satisfied. As such, our client will not have to pay any interest on the second mortgage and will only be responsible to pay a small percentage of the second mortgage pursuant to the Chapter 13 bankruptcy plan.