Lien Stripping

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outlander

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Lien Stripping
« on: January 22, 2014, 06:58:35 PM »
If I have a 2nd mortgage but my home is valued the same as my first mortgage, can the 2nd mortgage have the lien stripped and be subject to the bankruptcy?

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NotATrust-E

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Re: Lien Stripping
« Reply #1 on: January 24, 2014, 03:46:58 PM »
Both mortgages are subject to your bankruptcy, but the first mortgagee gets precidence. Since the second mortgage is secured by your house, it generally wouldn't go away with your bankruptcy.

Incidentally, this sounds like what happens in a Chapter 13 bankruptcy in the US, but there is no similar law in Canada.

If I have a 2nd mortgage but my home is valued the same as my first mortgage, can the 2nd mortgage have the lien stripped and be subject to the bankruptcy?
« Last Edit: February 23, 2014, 09:12:52 PM by NotATrust-E »

 

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