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Yes. A HELOC, or home equity line of credit, is also called a second mortgage (it can be a third or fourth or more though). The HELOC is a line of credit that is backed by your home. If you default on your HELOC payment, you are defaulting on a mortgage and you lose your house when you default on it. The difference between the first mortgage and the HELOC will really only matter to the banker who takes your home. The HELOC gets paid after the first mortgage is paid, so HELOCs are therefore riskier loans and generally come with higher interest rates. Example: your home cost $100 and you put $20 down. You now have $20 worth of equity in your home. You borrow $20 against that $20 in equity, so you now owe the full $100 again ($80 for the first mortgage, $20 for second/HELOC). If you default on either loan, the bank takes your home and will sell it to cover the loans. The first mortgage gets paid from the sale and anything left over goes to the second/HELOC.
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Can you go into foreclosure if you default on your second mortgage?
Yes. Your second mortgage is secured by your home, so if you default on payments, the lender has the right to foreclose.
What if you default on a home equity line of credit?
A home equity line of credit is a mortgage. If you default the lender will foreclose and take possession of the property by the foreclosure procedure used in your state.
What is first preforeclosure or foreclosure?
Pre-Foreclosure is a term the banks use internally to track the property's status. Essentially, what it means is that the home has already gone into default and a Notice of Default has been recorded. Pre-foreclosure is the time between the NOD filing and the Filing of the Notice of Trustee Sale.
What happens if I let my second balloon mortgage go into default Is my home or 1st mortgage going to suffer?
Yes, it could. Any lien holder can initiate the foreclosure process - so if your 2nd mortgage goes into default, the mortgage company could choose to start foreclosure proceedings based on the default.
What happens if you don't pay the mortgage?
You would be in default of the mortgage and the bank will take possession of the property by foreclosure. You would lose your home.
Can default cause you to lose your home?
Yes. That is what a foreclosure is all about.
In a foreclosure can a lender sue you for heloc?
If homeowners owe money on their HELOC (Home Equity Line of Credit), and are not paying the loan back, they can be sued for foreclosure. The HELOC is secured by the real estate, and the mortgage company has a lien on the home. When the borrowers signed for the line of credit, they agreed that the bank could foreclose on their house if they fell behind on the payments.
Can you go into foreclosure if you default on your second mortgage?
Yes. Your second mortgage is secured by your home, so if you default on payments, the lender has the right to foreclose.
Will the bank sue you if you foreclose on your home loan?
Yes, the bank will sue you if you default on your home loan and place your house in foreclosure.
What if you default on a home equity line of credit?
A home equity line of credit is a mortgage. If you default the lender will foreclose and take possession of the property by the foreclosure procedure used in your state.
Can a home equity line of credit be used like a checking account?
A home equity line of credit (HELOC) is similar to a checking account in the following ways: * Checks drawing funds on a HELOC are written like normal checks * A HELOC check will bounce (NSF) if you exceed the credit line (and you will likely pay fees for such an occurrence) * Some HELOC programs are free if you write checks, some require an annual fee whether you use them or not The HELOC is different from a checking account as follows: * Money spent on HELOC checks is money that you don't generally have at the time (it must be paid back eventually) * Minimum amount per check (checks from a HELOC usually must be at least $100, some banks want at least $250) * When using a HELOC check, your minimum monthly payment on the HELOC will change in the month after the check is cashed * If you don't pay the HELOC or default on the HELOC, the bank may go after your home * The interest rate on a HELOC generally changes once or twice per year
What is first preforeclosure or foreclosure?
Pre-Foreclosure is a term the banks use internally to track the property's status. Essentially, what it means is that the home has already gone into default and a Notice of Default has been recorded. Pre-foreclosure is the time between the NOD filing and the Filing of the Notice of Trustee Sale.
What happens if I let my second balloon mortgage go into default Is my home or 1st mortgage going to suffer?
Yes, it could. Any lien holder can initiate the foreclosure process - so if your 2nd mortgage goes into default, the mortgage company could choose to start foreclosure proceedings based on the default.
What can I do to stop home foreclosure?
I think the best way to avoid foreclosure is to prevent the filing of a Notice of Default. Lenders do not want to foreclose but will file a Notice of Default to protect their interests, if necessary. If you know you are unlikely to meet your mortgage obligation, the first thing you should do is call your lender.
What happens if you don't pay the mortgage?
You would be in default of the mortgage and the bank will take possession of the property by foreclosure. You would lose your home.
What is the best heloc rate possible?
Heloc stands for Home Equity Line of Credit . The best heloc rate possible depends on the financial history of the individual applying for the program.
Where can you get help when your home is in foreclosure pending and the loan company want give you any help you dont want to walk away you have half the money and they are giving you the run around no?
Well you can Call a Foreclosure Specialist.I called this Foreclosure Specialist when i was in Default.877-695-8320
