With the declining real estate market, throughout the Florida Keys and Key West, it is becoming more common to “lien strip” wholly unsecured second mortgages/deeds of trust on personal residences. The general rule is that these second, third, and all other junior mortgages can be removed off the residence provided the first mortgage/deed of trust is also partially unsecured, or secured in full to such an extent that the next lien has no security in the property whatsoever due to the decreased fair market value. In other words, the Debtor must demonstrate that the value of the house is less than the first mortgage debt. The Debtor, however, must still qualify for a Chapter 13 bankruptcy, proving the Debtor has income and is within the debt limitations in order to proceed with this filing and lien strip the junior mortgages. Notwithstanding, the lien strip reduces the total mortgage payment due by the Debtor. Consult our law firm if this occurs at 305.451.0013 for a confidential consultation. We will review your situation and provide you information on your legal rights, options and responsibilities.