Tammy: Hi I'm Tammy Trujillo. I'm here with Greg Shanfeld, a bankruptcy attorney with Wadhwani & Shanfeld. Now, I've been hearing that it's possible to totally eliminate a second mortgage altogether. Is that really possible?
Greg: It is possible Tammy. In a Chapter 13, we can strip off a second mortgage in its entirety when we can show that the home is worth less than what's owed on the first mortgage. Essentially what we're doing is showing there's no value supporting the second mortgage, and we're treating it like we would any other unsecured debt, like a credit card.
Tammy: Have you been doing a lot of these and do you usually get it through?
Greg: We do. We do them every week, basically. We've been doing a lot of them, we've had tremendous success with them, and in fact, if the package of the motion or the adversary proceeding is done correctly, typically the lenders don't have legitimate grounds to oppose them.
Tammy: That's great news.