Stripping off a Second Mortgage
Jan 01, 2016OUTCOME: The second mortgage was stripped and paid out ten cents on the dollar.
A month ago, I had a Chapter 13 case where my clients had two mortgages on their home. The first Mortgage had a balance of $101,000.00 and the second mortgage had a balance of $38,655.00. Since the de ... btors home had dropped in value down to $100,000.00, I proposed in the chapter 13 case to strip off the second mortgage and treat the second mortgage as an unsecured claim and pay it back at ten cents on the dollar.