What can we do to obtain the letter of reconveyance? 6 Answers as of June 02, 2014

My wife and I filed Chapter 13 in May of 2009, and just this month completed our 5-year plan by submitting our final payment to the Trustee. We are in need of funds to send our child to college, home and car repairs, etc. We recently found a lender who is capable of helping us refinance our home and take out equity before being discharged to save us on the interest rate. The problem is this… Our 2nd mortgage company will not provide us with the reconveyance. They told me when I called to ask for it, that they had no record of the request from the courts or my attorney. (My attorney has no idea of what a reconveyance is or anything related to Real Estate in a BK) We have court documents that have been filed with the L.A. county recorder’s office detailing that the 2nd deed/lien on the property would be stripped upon successful completion of the payment plan. Can the 2nd mortgage company strong hold us and make us wait until discharge? If we wait until discharge to refi, we will not be eligible for one for one year, and at that time, if we were to find a lender; the rate would be twice as high. What can we do to obtain the letter of reconveyance now? Any information you may have for us would be GREATLY appreciated.

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Steven Alpers | Steven Alpers
Your lawyer would have to request permission from the bankruptcy court to refinance.
Answer Applies to: California
Replied: 6/2/2014
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
Your issue is more with the Title Company than with the lender. However, if you only completed your payments this month, it's highly unlikely (at least in the Central District of California) that you have already received your discharge, which is a precondition to any lien strip. Moreover, you have to file a separate Declaration with the court to obtain a recordable order actually stripping the lien. Once that is done, you don't need anything from the lender. It sounds like your attorney doesn't fully understand what to do. You may want to hire a more experienced Chapter 13 attorney in your area to finish this up for you.
Answer Applies to: California
Replied: 6/2/2014
Law Office of Peter M. Lively
Law Office of Peter M. Lively | Peter M. Lively
Check the order avoiding lien, it is likely contingent upon discharge.
Answer Applies to: California
Replied: 6/2/2014
Tokarska Law Center
Tokarska Law Center | Kathryn U. Tokarska
Unfortunately, a lien strip of a second mortgage is conditioned upon receiving a discharge in your chapter 13 case. From the time you make your last payment to the time when the discharge is granted by the court could take as much as 90 days. The Trustee needs to do some accounting and file reports with the court before you can submit one last form, I'm assuming that you already completed and filed the Financial Management Course certificate and form B23. This answer applies to San Diego, check with your attorney or local jurisdiction as there may be some differences in the timing and procedures.
Answer Applies to: California
Replied: 5/30/2014
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Get another lawyer ASAP. Record a copy of the Chapter 13 discharge because the lien strip is contingent on completing the ch13 case. It then would be up to the lender to file an action to set aside the judgement if service was improper, BUT even if service was improper you could still get it set aside assuming the facts in the compliant are accurate. This will take a knowledgeable attorney to get this right. Try to find one that some litigation experience.
Answer Applies to: California
Replied: 5/30/2014
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