Tuesday, January 10, 2012


On Monday, January 9, 2012 I won a motion to value (lien strip) case against Bank of America in the amount of $257,991.31 for my client.  In July, I filed a chapter 13 plan on behalf of my client and filed a separate motion to value his second mortgage at $0.  This is possible in a chapter 13 filing when the second mortgage is unsecured, which means value of the home is less than the amount of the first mortgage.

The appraisals that the opposing counsel provided were much higher than the amount of the first mortgage, but I was able to show evidence of recently sold homes, as well as evidence of water damage and foundation damage to the home to counter the appraisal amount. 

The result of this case is an order stating that my client's second mortgage will be valued at $0. When his chapter 13 plan runs after the 36 month period, he will own the home with only one mortgage.  He will pay nothing to the bank on his second mortgage so long as he continues making payments to the trustee in accordance with his chapter 13 plan.  Since the loan value on the first is so close to the actual value of the home, my client will soon own a home with equity.

If you, or someone you know is interested in learning if bankruptcy can help you, please contact The Law Office of Michael T. Krueger at 925.454.4460.

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