Home prices in Nevada, Placer and Sacramento County are on the rise.  There are some predictions that rises of over 20% will happen in the next year.  In the bankruptcy field, this means that the opportunity to eliminate your second mortgage may disappear.  This process is known as “lien stripping”.  When you file for a Chapter 13 and your second mortgage is unsecured ( that is your house is not worth more than the amount of your first mortgage), by completing your Chapter 13 Plan, you can gain the elimination of the unsecured second mortgage.  At the end of the Plan the second mortgage lien is reconveyed back to you and removed from the County Record.  This can be a big financial benefit, sometimes mortgages over $200,000 can be eliminated.  

Perhaps you took out a sub-prime mortgage and your payments are rising.  Often these arrangements involved creating a second mortgage that is now unsecured.  THe time to act is when the home prices have not yet recovered, if they ever will.  If you are facing a Notice of Default or foreclosure sale date you can avoid that disaster by filing for a Debt Reorganization Plan in Chapter 13.  Your arrearage in mortgage payments are spread over 36 to 60 months while you make your regular payments.  This can save the home you love and where your children have grown.  It worth exploring and I will be glad to talk with you free of charge in person or on the phone about these options.  I have been doing this locally for twenty-seven years.  Call me at 530-265-2939  Stan Berman