Bankruptcy

The answer to that question - in the Middle District of Florida - is NO. If the amount of the first mortgage on a property exceeds the value of the property (the home is "underwater") then a second mortgage or any other junior lien can be "stripped off" in a Chapter 13 Bankruptcy. But, on July 28, 2010, the Bankruptcy court in the Middle District of Florida declined to follow a minority of courts which allow stripping in Chapter 7. The Florida court ruled that a second mortgage on a primary r...