Most U.S. bankruptcy courts already recognize mortgage lien stripping as an option for distressed homeowners. Minnesota has only recently allowed this as a remedy. If you have a second or third mortgage on your home that is "underwater" - meaning that your home is currently worth less than what you owe on your first mortgage - bankruptcy relief may allow you to strip any underwater mortgages away entirely, helping many struggling homeowners stay in their homes and avoid foreclosure.
A recent article in "Minnesota Lawyer" explains the current legal developments. The key Minnesota case on the issue is on appeal. We can expect a decision by the appellate court early this year and if the court follows the national trend, more Minnesota homeowners will be able to consider mortgage stripping as an option.