CO strip mortgage
Posted by adairsawyer on May 14th, 2013
The process known as CO strip mortgage consists in stripping the second mortgage for people who have filed in bankruptcy. There are a number of lawyers who manage it in order to allow people to keep their houses. The CO Chapter 13 plan is the heart of the case itself, as it states the amount of money the creditors receive, the duration of the plan, the property’s value of the debtor and others. For the proceeding of the case, the plan has to be confirmed by the court. There is the possibility for either creditors or bankruptcy trustee to object to several aspects.
CO strip mortgage means the lawyer will make everything possible to remove the security interest for the debt to be classified as unsecured. The CO Chapter 13 plan must be completed and afterwards, the security interest is removed. This is because the second mortgage is not secured and there is the possibility to reduce the debt, even if the property is priced less than the amount secured from the first mortgage. First of all, there is the need to determine if a certain property is able to be stripped.
If the case is a success and the lawyer manages to prevail, the second mortgage does not have to be paid extra, as it will be included in the CO Chapter 13 plan. Once the plan is completed, only the first mortgage will be paid, as the bankruptcy case regarding the remaining debt will be discharged. To be able to CO strip mortgage, the lawyer needs to go through a lot and manage many calculations. This is why it is essential to find a lawyer who is not afraid of the amount of work involved, someone who is familiar with the procedure and who will go through it until the end. Some lawyers find this method as being one of the most effective and if you are interested in following it, then find someone experienced.
CO strip mortgage works in CO Chapter 13 plan. It allows many people to keep their houses, being the most realistic manner to save them when foreclosure has been initiated. But the process does not take place immediately after the Chapter 13 bankruptcy is filed. The lawyer has to file a motion proving the second mortgage can be stripped. The payments will then be included in the plan, which can last up o five years. It is critical to find a good lawyer who specializes in bankruptcy and who can support the client and his/her case.
Finding such a lawyer is not very difficult, considering the amount of resources available nowadays. People can start looking online, can ask for recommendations from family, friends and people they know and more. It is always possible to establish meetings with several lawyers to find out more about them and to see exactly if they are suitable for the case. Since it is such a critical situation, everything must be handled by a professional, as a lawyer can state from the beginning the chances of success, duration of time and the how the entire plan will be implemented.
In case you have a second mortgage and you desire to keep your property, you can talk with a lawyer about the CO strip mortgage option. If you go for the CO Chapter 13 plan, the property does not have to be given, as the debt will be repaid out of the income.
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About the Authoradairsawyer
Joined: April 9th, 2011
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