How difficult will this be and about how much will this cost if this lien is a second mortgage? 9 Answers as of April 28, 2016

I am trying to refinance my home. I filed bankruptcy September 2014 and closed January 2015. The loan was approved but now my title company is requesting an avoidance stripping lien.

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Ronald K. Nims LLC | Ronald K. Nims
There is a lien which shows up against the title to your home, the lien is not valid because you filed bankruptcy before you closed on the house. You need to contact the creditor and ask for a lien release.
Answer Applies to: Ohio
Replied: 4/28/2016
Stephens Gourley & Bywater | David A. Stephens
I am not sure on cost. It will take some time and in chapter 7 a lien avoidance for a voluntarily signed mortgage is not a guaranteed result. YOu may want to try to settle with the second mortgage.
Answer Applies to: Nevada
Replied: 4/28/2016
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
I assume you filed chapter 7 (based on your time line). You can only strip off a lien in Ch13. The Supreme Court ruled on this in June 2015. A chapter 13 can take anywhere between 36 to 60 months depending on your income.
Answer Applies to: California
Replied: 4/28/2016
Philip R. Boardman, Attorney at Law
Philip R. Boardman, Attorney at Law | Phil Boardman
You need to file a new case to accomplished this goal.
Answer Applies to: Virginia
Replied: 4/26/2016
Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
Please speak with your bankruptcy lawyer about this situation. I would expect that if the lien could have been stripped in a bankruptcy it would have been. Judging from the time frame either you didn't complete your plan and receive a discharge or it was a chapter 7 and not a chapter 13. If it was a chapter 7 there is no lien strip in California. You can only strip a second lien if it is completely unsecured at the time of filing and you complete your chapter 13 plan. Speak with your prior attorney or a knowledgeable local bankruptcy attorney about the possibilities open to you.
Answer Applies to: California
Replied: 4/25/2016
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    My guess is that you never got an order a stripping lien because to get one, you have to have filed Chapter 13. And it is highly unlikely you would have filed a chapter 13 and have gotten a discharge within 4 months because Chapter 13 requires a 3 to 5 year repayment commitment.. However, if your lien was a judgment lien, the process would be to obtain an order avoiding the lien. That you may be able to accomplish by reopening your case and filing a motion, ASSUMING you have the right grounds to do this. Expect an experienced attorney to accomplish this in a couple of months. I have seen an inexperienced attorney take over a year to do this.
    Answer Applies to: Nevada
    Replied: 4/25/2016
    GARCIA & GONZALES, P.C.
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    It depends on numerous factors. Pay an experienced BK lawyer to look at your file and advise you.
    Answer Applies to: Colorado
    Replied: 4/25/2016
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    Understandably. If your lawyer did not attend to this during the case, s/he was not doing the job completely. I think you would need to reopen the case (court charges $300), and file a motion to value the lien at $-0-. The Order should be drafted in proper form to be recorded with the Register of Deeds. You will need a formal appraisal to show that the value of the home is less than the first mortgage. (Cost $350 more or less). If you were a client of this office, we would probably charge about $800 - $1000, plus the two costs mentioned above. I cannot tell you, of course, what some other lawyer would charge. Good Luck.
    Answer Applies to: Wisconsin
    Replied: 4/25/2016
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    Your bankruptcy did not remove the lien on your home, nor could it do so. Since the lien is voluntary you cannot lien strip it. The only way to remove the lien is to file a chapter 13 and see to have it removed. You may file a chapter 13 now, file a motion to value the home and strip the lien, but only if the lien is not a single penny secured in the value of the home. This will most likely cost you $4,500 and will take you at least 90 days. You may be better off making the 2nd mtg holder an offer to take some money through the refinance to go away since it sounds like you have equity in the home.
    Answer Applies to: Nevada
    Replied: 4/25/2016
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