Select Page

Experienced lawyers, driven to succeed on your behalf.


Experienced lawyers, driven to succeed on your behalf.

Advice About Lien Stripping

It is not uncommon for people to have two or even three mortgages on their home. When the shaky real estate market has caused your home’s value to be less than you owe on your mortgages, and the economic downturn has made it impossible to make your payments, the financial stress of possibly losing your home can become unbearable.

Filing for Chapter 11 or Chapter 13 bankruptcy will allow you to keep your home, and strip the second or third lien. To discuss your options, call the sophisticated Harrisburg lien stripping attorneys at Jacobson, Julius & Harshberger for a free, no-pressure consultation. You can also call us anytime at 717-909-5858.

What Is Lien Stripping?

Lien stripping is a process available through Chapter 13 bankruptcy (or where your financial situation warrants, Chapter 11 bankruptcy) that removes the lien a second or third mortgage holds on your home, when the value of your mortgages exceeds the (diminished) value of your home.

For example, if when you took out your second mortgage of $200,000, your home was worth $1 million and the original mortgage was $800,000, if your home’s value has now diminished to $800,000, the lien on your home for the second mortgage of $200,000 can be stripped, leaving only the first mortgage payment.

It is important to understand, however, that the lien for the original mortgage cannot be stripped — even if the amount owed on your original mortgage exceeds the diminished value of your home and these payments have become unmanageable. In this situation, our team will focus on making your mortgage payments manageable within your current budget by extending the payments over 36-60 months, depending on your specific circumstances.

Lien stripping is not available in Chapter 7 bankruptcy.

Find Out if You Can Eliminate Your Second Mortgage

If you have a second mortgage on your home and cannot make your payments, contact us online today to discuss your options. We focus on helping people throughout South Central Pennsylvania keep their property and make their mortgage payments manageable. We are located in Harrisburg, and in your location by appointment only.

We are a debt relief agency. We help people file for bankruptcy protection under the Bankruptcy Code.