Legal Question in Bankruptcy in Georgia

Stripping a second mortgage

I have been told that you can strip a second mortgage. If you have a full appraisal done on your home do you go by what the balance on your home is or what you financed your total loan for?


Asked on 5/20/09, 4:25 pm

1 Answer from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Re: Stripping a second mortgage

In Nobelman v. American Savings Bank, 508 U.S. 324, 113 S. Ct. 2106 (1993), the U.S. Supreme Court held that the rights of an undersecured homestead lender are protected from modification in Chapter 13 bankruptcy proceedings (no lien stripping).

The key case in this part of the country is In Re Tanner, an 11th Circuit case (from Georgia) in 2000.

If your first mortgage is less than the value of the home, then your second mortgage is secured by at least $1.00. In this case, you wouldn't be able to lien strip. The second mortgage must be wholly unsecured for a lien strip to be a possibility in this circuit.

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Answered on 5/21/09, 1:07 am


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