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Debtors Can't 'Strip Off' Their Second Mortgage (access required)

A couple in chapter 7 bankruptcy may not void a second mortgage on their home just because their first mortgage already exceeds the home's value, the 4th U.S. Circuit Court of Appeals has ruled. Rejecting the debtors' effort to "strip off" the second-mortgage lien, the appellate court held that a 1992 Supreme Court decision that said ...

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