As prices of homes in Sacramento, Stockton, Fairfield, and Modesto, California areas increase, it becomes more difficult to Lienstrip or remove the second mortgage or equity line of credit off your house under Chapter 13 Bankruptcy. If the house is your primary residence, you can only strip off the second mortgage or equity line of credit if the value of your house is less than what you owe for your first mortgage or first deed of trust.
Not just one factor is the cause of the increased home prices in Sacramento, Stockton, Fairfield, and Modesto, California areas. The factors that were the driving force of the recession has started to abate. Inventories from foreclosures and short sales have declined significant. The number of jobs have increased. New homes have not increase enough to satisfy the demand for home ownership due to homebuilder trepidation.
If you have a second mortgage or equity line of credit on your house that you want to keep, it is to your financial benefit to consult an experienced Bankruptcy Attorney soon to determine if you qualify for lienstripping under Chapter 13 Bankruptcy.
Call to scheduled an appointement at any of our Bankruptcy Attorney Offices located in Sacramento, Stockton, and Fairfield, California.