Question: can a bank which i borrowed money from as an equity line on a property i owned out-right, foreclose on the property itself if the equity line payments are not being made?
Answer: – Absolutely… I’m sure if you review your paperwork it will tell you that they have the right to foreclose if payments are not made.
Allowing home to go into foreclosure even with equity…
Hi
I have what I consider a dilemma. I am 5 months behind on mortgage, and at least as many months behind on HOA fees.
In November I did make one mortgage payment, and made agreement with HOA as they have us in pre-foreclosure. I paid them $1000.
So far 21 years have been paid on this 30 year mortgage. Thus even with the delinquency and a 2nd mortgage (only one month behind) and HOA fees there is equity of between $40,000-$60,000.
The dilemma comes in as the wife and I are to be divorced probably within the next month. My feeling is that I not spend any money I really don’t have at this time to stay out of foreclosure.
Although separated my STBX and I are both still living at the property. It has been close to a year. My thought is that the divorce judge will probably have one of us stay at the property and other move out. I imagine he will tell us to put condo on market immediately.
I’m not sure the lender will hold out that long before starting foreclosure proceedings. The condo is in need of about $5,000 in repair. I choose to just lower price and sell as is. The reason it is not for sale already is that until a couple of weeks ago we were going to file joint bankruptcy and thus could not have condo on market. My STBX was totally dragging her feet at every turn, and the divorce judge got fed up and ordered we go through with divorce now.
During the past months, thinking it would be a while til the divorce, I have been trying to get a loan mod through lender. I was praying that they would forgive arrearage. It is still “in process”.
So I guess what I am asking is would we still be able to sell condo for market price if foreclosure has been initiated?
My credit score is probably already at zero, so that plays no part in decision for me. Is there any reason to make payments if sale, foreclosure, quick sale… is inevitable?
What might you do?
Thanks
Given the situation, I would probably sell the the house and start over if I knew I wasn’t going to file bankruptcy. Yes, your credit has been affected, but probably not a much as you think. The longer into the foreclosure process it gets the worse your credit gets. The ultimate being a foreclosure on your credit which you’ll want to avoid for sure. If you sell it, at least you’ll be getting some money, even though it may not be a lot because you’ll probably have to split it with the soon to be ex.
If I was making decent money, then I might re-consider because now is not the time to sell. Now is the time to be buying properties. Just my thoughts…hope it helps.