What Is Lien Stripping?

Years after the housing collapse of 2006, many people in Fort Lauderdale and throughout South Florida are still upside down on their homes. If your mortgage exceeds the value of your home, the attorneys of Nowack & Olson have many tools available to help you pick yourself up, wipe out certain debts and begin anew.

Start on the path to debt relief today by calling 888-813-4737. Hablamos español.

Erasing Second Mortgages And Liens

Individuals pursuing Chapter 7 or Chapter 13 bankruptcy in Florida have an additional tool for getting rid of second mortgages and liens. These debts are secured debts, which means the creditor has a right to take your home if you fail to pay. During a lien strip, however, the bankruptcy court can essentially turn these second mortgages and liens into unsecured debts by forcing the lender to remove its lien on your property.

Bankruptcy may allow you to strip off a second mortgage or homeowners association lien without paying all your back assessments and dues.

If your second mortgage or lien is treated as unsecured debt in your bankruptcy, it is treated just like medical or credit card debts. You can have a schedule for repayment that requires you to make certain payments on a reasonable timeline. Then, the remaining debt is discharged at the end of your repayment plan.

Benefits Of Lien Stripping

Lien stripping has immediate and long-term benefits:

  • Immediate: You no longer have to pay your second mortgage.
  • Long-term: Your second mortgage lien is dismissed when you complete your repayment plan and have your debts discharged.

Questions About Lien Stripping? Call Nowack & Olson.

Like all matters involving bankruptcy and real estate, lien strips are highly complex and should not be attempted without first consulting a lawyer. To schedule a free initial consultation at one of our four office locations in Fort Lauderdale, Miami, Boca Raton and Jupiter, call us toll free at 888-813-4737 or send us an email.

Learn about our experience and how we can help you. Se habla español.