News & Insights

Under certain bankruptcy laws, unsecured mortgages can be reduced or removed when the property value is lower than the total owed on senior loans. This process, known as lien stripping, allows homeowners in Chapter 13 or Chapter 11 to eliminate second or junior mortgages that are no longer backed by equity.

Homeowners can technically negotiate a short sale on their own, but it is strongly recommended to involve a real estate professional or attorney experienced in short sales.