Video Transcript:
So on real estate, if there's more than one mortgage, more than one lien, a method that some lenders will use to eliminate those is what's called lien stripping. This is Dave at TitleSearch.com. And lien stripping is a guerrilla technique for a lender to strip out other liens that might be ahead of them or that might compete with them for equity in the property. And one method to do that is using the bankruptcy courts. And a bankruptcy court can go ahead and instead of distributing proceeds from the sale of a piece of real estate to all of the lenders pro rata share -they can lean strip some of the junior lenders so they get nothing. And the priority lender might get some money and the secondary lenders might get a little bit. But if there's other lien holders or equity lines, they might not get any money. So lean stripping is a powerful tool. It's a forceful tool. In many cases, junior lenders can object to that and try to work it out in court so they don't get stripped out of their equity position. This can even apply to non-real estate secured loans. Sometimes lien stripping can apply to credit card loans, can apply to other types of unsecured auto loans in certain cases. So if you have a claim against a person or a lien on a property, beware of the circumstances that might result in your lien being stripped out, where you have no claim against anything of tangible value or any asset. If you have questions about real estate title research, you can reach us at our website. It's title search dot com.