Strip Off: When Bankruptcy and a Second Mortgage Are an Opportunity for Florida Homeowners

Record-high rents and not being able to use profits from a previous home sale made coming up with a down payment – the biggest hurdle for renters wanting to become homeowners ii. open houses -.

You can view the case here. If you file for Chapter 7 bankruptcy, you cannot get rid of second mortgages, home equity lines of credit (HELOCs), or home equity loans. Filers in the Eleventh Circuit Court of Appeals, are no longer able to strip off (remove) these types of liens in Chapter 7 bankruptcy.

Chapter 13 bankruptcy offers debtors the opportunity to strip off a wholly unsecured second mortgage on their primary residence. Most courts have held that debtor’s mortgage is stripped from his house when he completes the Chapter 13 plan and gets his Chapter 13 discharge.

Predatory lending is a fastgrowing practice concentrated in the subprime mortgage market, in which financial institutions use an array of lending practices to strip the equity from the homes of.

13:15 ET Subscribe to our weekly e-newsletter, Top News. Supreme Court: Bankrupt homeowners can’t ‘strip off’ second mortgages. In a victory for lenders, the U.S. Supreme Court has ruled that homeowners can’t "strip off" a second mortgage in a bankruptcy proceeding if the loan is wholly underwater.

Filing Bankruptcy KingCast/Mortgage Movies sees fake maryland foreclosure cops trespass and get a smack down, next door in DC POTUS falls victim to mortgage fraud and Florida AG protects corruption! A Fairfax County loan officer who helped defraud banks out of more than $2.5 million in a mortgage fraud conspiracy, then tried to flee the country after her guilty plea, was sentenced Friday to 77 months in federal prison. Lourdes Rojas Almanza, 28, of Falls Church, was part of a ring of investors, real estate agents and loan officers who lined up more than 30 fraudulent house purchases in.2005 Bankruptcy Act Credit Counseling The 2005 Bankruptcy Act requires all individual debtors who file bankruptcy on or after October 17, 2005, to undergo credit counseling within six months before filing for bankruptcy relief and to complete a financial management instructional course after filing bankruptcy.

 · Beginning October 1, 2015, lenders in Nevada will have a much-needed right to redeem properties sold at homeowners association (HOA) foreclosure sales for pennies on the dollar.

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A Debtor enters into a Chapter 13 to partially repay his or her debt.. explanation of how the debtor intends to straighten out his financial mess.. 13 nowadays is the ability to strip second mortgages if the value of the home is. In May 2012, due to new caselaw, a second mortgage can now be stripped.. Tampa, FL 33606.

Because the second mortgage does not attach to any equity in the property, the lien can be avoided or “stripped” in a Chapter 13 thereby removing the balance of $100,000 at the completion of.

Will Florida’s Supreme Court protect the Homeowner or Bank? Supreme Court says that zoning laws are constitutional because they protect which of the following?. The homeowners principal residence is protected from certain creditors foreclosing but it is not protected from foreclosing due to property taxes or from loans taken to purchase the home or home improvements. Florida real estate practice.

Second and third mortgages, and home equity loans and HELOCs, on the other hand, may be treated differently in a Chapter 13 bankruptcy under certain circumstances. Specifically, if your home value has declined, and your equity no longer covers the first mortgage, then your other mortgages are no longer "secured.".