What is a lien?

A lien is any document that affects the title to your home. It may be a mortgage, a home equity line of credit, a court judgment, or even a notice that you owe back taxes or Association dues. You cannot sell a piece of real estate without paying off or otherwise resolving all liens on a property. Nevada Homestead laws only protect your property from being forcibly sold as a result of a judgment lien. A Homestead does not stop a lien from earning interest every month and growing larger and larger each month.

What can be done if the liens are larger than the value of a property?

Some people are still able to afford to pay $300,000 for a house that is only worth $150,000. And of these people who are able to afford to do so, some will stay, some will try to "short sale" their property, while others may let the property go into foreclosure. Those who could afford to stay, but chose to let the property go into foreclosure are described as engaging in a "strategic foreclosure."

Many more people have found that they cannot afford to stay in their homes for a variety of financial reasons. Some have lots their jobs or had their wages or hours cut. Others have suffered unexpected personal problems. Many people have looked to loan modification to try to make their mortgage payments more affordable. For those that qualify, lienstripping can allow a person to completely remove a judgment lien as well as a home equity line of credit or other "subordinate mortgage lien."

What is lienstripping?

Lienstripping is a program within Chapter 13 Bankruptcy that allows the lien to be completely removed from the title to real estate. It doesn’t matter if the real estate is a home, an office building, an apartment complex, or bare land.

Lienstripping requires that the property be appraised for an amount that is less than the balance on the first mortgage. Lienstripping also requires that the person file and complete a debt settlement program in Chapter 13, which is a court supervised debt settlement program, requiring monthly payments for up to 5 years.

If I am underwater on my first mortgage, what else would I need to qualify to lienstrip?

You have to show that you have a steady income sufficient to afford to pay the monthly ongoing mortgage payment, pay your other expenses, and have at least $100 left over to put towards paying a portion of your debts. If you have certain types of debts that Bankruptcy law requires to be paid in full, such as past income taxes, child support, or past due payments on your first mortgage, your monthly payments will have to be large enough to take care of these debts. A Chapter 13 will require you to pay all money left over after paying your essential living expenses to a Bankruptcy Trustee, who will then portion out your payments to pay some of your debts.

Is lienstripping legitimate?

Lienstripping can only take place under the authority of a United States federal bankruptcy judge. The federal court system is not going to approve lienstripping unless it is completely satisfied that lienstripping is allowed by law. Millions of dollars of liens have been removed by the Bankruptcy Judges in Nevada every week for the past few years.

Is there any other way to remove liens?

Judgment liens can be removed in Chapter 7, which is regular bankruptcy, as well as in Chapter 13. In many situations, a bankruptcy attorney such as Dorothy Bunce with A Fresh Start can persuade a mortgage lienholder to accept "pennies on the dollar" to remove a 2nd or 3rd deed of trust or home equity loan, especially if the property owner has eliminated the debt through bankruptcy. But results outside of Chapter 13 bankruptcy cannot be guaranteed.

Bankruptcy allowed GM and Chrysler to return to profitability. Bankruptcy allowed Station Casinos to remodel and still stay open.

Why should the rest of us feel that Bankruptcy is a stigma?

Go to our video page to watch attorney Dorothy Bunce explain the Nevada foreclosure laws in more detail. If you live in southern Nevada, and want to learn more about whether you can qualify to save tens of thousands of dollars by lienstripping, call 702-456-1920, extension 205 during business hours.

And we may be able to help you resolve other financial problems as well. Are you facing a pending foreclosure? Call us for immediate help. Overwhelmed by debt that's threatening ownership of your home? Watch our 2 part video about Nevada foreclosure or our 4 part video about mortgage modification on our video page.

And we may be able to help you resolve other financial problems as well. Are you facing a pending foreclosure? Call us for immediate help. Overwhelmed by debt that's threatening ownership of your home?

You deserve a fresh start!
At A Fresh Start, we use the law to help you get a fresh start!

Call 800-903-5715 anytime to hear recorded information about foreclosure.
Go to our video page to watch attorney Dorothy Bunce
Learn all about Nevada foreclosure or mortgage modification
See her explain the Nevada foreclosure laws in more detail.

We urge you to read our many client reviews posted on the internet.


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A Fresh Start Law Office
2037 Franklin Ave • Las Vegas, NV 89104
Email: afreshstart@cox.net