Mortgage Stripping in Minnesota

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.

About the author: Dan Cooke