Foreclosure University Loan Modifications

Question: I have a home equity line of credit on my home in florida that I owe about $75,000 on. I owe about the same on my 1st mortgage that is with the same lender. If I can’t afford to make the payments on the line of credit but continue to make my 1st mortgage payments can the lender foreclose on my home?

Answer: –  Yes, the 2nd can and most likely will foreclosure on your home, even if it’s the same lender because you are not meeting your obligation to them.  It’s just a matter of time. You might try to do a Loan Modification especially if your 1st and 2nd mortgages are with the same lender

Question: I can manage my home equity line of credit but it will mature within the year and because things have tightened up so much and property values have dropped it is unlikely that I will get the financing again. What can I do. I cannot pay it off at this time.

Answer: -Right now there are lots of Loan Modifications going on. This is where the lender can modify the original loan terms to something that is more doable for you. You may want to check it out.

Question: i just received a letter asking me to submit my tax info. Should i do that and still make the payment to get caught up?

Answer: – I guess it all depends on what you are trying to do. Are you trying to work out a loan modification or forbearance agreement? Why are they asking for tax info? Depending on the lender and how far you are behind, they may not accept your payment to catch up. I would call your lender to find out why they need your taxes.