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Copyright Ryan Beach Law - Grand Rapids Bankruptcy Attorney 

This website is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

The Law Offices of Ryan F. Beach PLLC

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Creative and Compassionate Solutions.





Call our office today at 616.389.0629 to see if stripping your second mortgage or home equity loan makes financial sense for you.

  • Make your home more affordable by lowering your monthly mortgage obligation;
  • Reduce the negative equity in your home;
  • Avoid a large payment due under a balloon note or early maturing loan; and/or
  • Prevent foreclosure by a second mortgage or home equity loan holder

By stripping your second mortgage or home equity loan, you will realize benefits that may:

The Bottom Line

While utilizing a Chapter 13 plan to strip a mortgage or home equity loan, you do not make payments toward the loan.  In a Chapter 13, the stripped loan is treated as an unsecured debt and will be paid by the Trustee according to the terms of your confirmed reorganization plan.  So, if you are struggling with making your payments on a second mortgage or home equity loan, a Chapter 13 can making keeping your home more affordable and bring your loan balance more in line with its actual market value.

Do I Pay My Second Mortgage or Home Equity Loan While It Is Being Stripped?

If the value of your home is less than what you owe on your first or primary mortgage, it may be possible to eliminate your second mortgage or home equity loan.


Under Chapter 13, an individual may "strip" a lien from collateral, including a home, if there is no equity supporting the lien (first mortgage balance is greater than the home value).  By stripping the lien, the debt is treated as an unsecured debt.  For most people, Chapter 13 allows for the repayment of unsecured debt at a very small fraction of what is owed. 


After the successful completion of the Chapter 13 plan, documents are filed with the Register of Deeds, which legally removes the stripped second mortgage or home equity loan lien from your home.   Any unpaid portion of the stripped lien is eliminated, or "discharged", and may not be collected upon by a creditor.

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Legally Eliminate Your Second Mortgage or Home Equity Loan