Stop the Foreclosure and Save Your Home

Chapter 13 offers you an opportunity to pay back payments over 3 to 5 years without your lender=s approval.  In some cases you can eliminate 2^nd and 3^rd Deeds of Trust, pay back any delinquent tax debt, in most cases penalty and interest free, and may in some cases reduce or eliminate credit card debt. If time is running out, filing chapter 13 immediately stops the foreclosure process.  This form of relief is not for everybody. Our office can help you determine whether this option is available to you.

Lien Stripping: The value of the property must be less than the amount of the first:

As an example: The home is appraised (an outside appraisal is required) at $450,000.00. The homeowner has a first trust deed owed to ABC Bank in the amount of $460,000. The homeowner also has a second trust deed owed to CBA Bank in the amount of $100,000. In this example, the homeowner can file a motion to avoid the lien of CBA Bank.

Example #2: The home is appraised at $450,000.00. The homeowner has a first trust deed owed to ABC Bank in the amount of $400,000. There exists a second owed to CBA Bank in the amount of $60,000 and a third owed to XYZ Bank in the amount of $40,000. In this example, the homeowner can only file a motion to avoid the lien of XYZ Bank.

Example #3. The home is appraised at $450,000.00. The homeowner has a first trust deed owed to ABC Bank in the amount of $400,000. There exists a second owed to CBA Bank in the amount of $60,000. In this example the homeowner cannot file a motion to avoid the lien of CBA Bank

To get this relief you must file and complete a Chapter 13 plan:

This relief is only available to debtor(s) in Chapter 13. When the motion is filed and approved, the obligation to pay the lender is suspended. The debt owed to the lender is treated as an unsecured debt (like credit card obligations). The lender must record a reconveyance deed upon completion of the Chapter 13 plan. 

Contact our office for a free, no obligation consultation to further discuss your options.