The Mortgage Forgiveness Debt Relief Act and Debt Cancellation

If you have a second or third mortgage on your home, you may be eligible to strip the 2nd or 3rd lien off your home if your home is worth less that your current 1st mortgage. Lien Stripping is not a new idea in Bankruptcy but due to the current housing crisis, the practice is gaining ground. Lien stripping was not a common practice in the past mainly because most people has at least some equity in their home. Nowadays, with home prices falling, lien stripping may be an option for many people who are upside down with their mortgages.