Skip to main content

In a Chapter 13 is it better to do a lien strip or a deed in lieu of foreclosure?

Chicago, IL |

I want to move because of flooding and safety issue with my condo but I was recently laid off so I have no income to try to rent another unit in a safe neighborhood of my city.

I am going back to my attorney to adjust my trustee payments, but I also need to arrange it so I can stay in this home longer (until I get a full time job).

What would you recommend?

How long before I have to actually vacate the premises if there's no way I surrender the property before they foreclose on it? Is it better to just wait until they foreclose - to allow myself more time to find regular income and/or a cheap, half-way safe place to live?

Attorney Answers 2


You can only strip 2nd mortgages that have absolutely no equity. Therefore, if you only have one mortgage, you can not strip the mortgage with a Chapter 13. A deed in lieu will only satisfy the first mortgage and the second mortgage (assuming you have one) can still sue on the note. If you are underwater on the first mortgage, a deed in lieu will be difficult to obtain. Good luck!

Mark as helpful


If you don't plan on keeping the property, why go through the extra expense to lien strip?

And if you want to stay in the property as long as possible, why sign over title to your mortgage company? It just gives them the right to evict you that much sooner.

If your plan provided for paying arrearages on your mortgage, you will certainly want to see your attorney to modify your plan to omit making these payments in the future.

I would recommend speaking with your attorney before making any decisions, because your ideas won't accomplish the objectives you specify.

Good luck!

Mark as helpful