Question: I live in California. My house went into foreclosure and sold at auction. I have a home equity line that I owe 54K on. The home equity line is current. If I continue to pay on it, what will happen? Will I be able to continue to make payments or will they come after me for the full amount?
Foreclosure University
Your Online Real Estate Investing Resource
I’m sure the 2nd mortgage lender doesn’t have a problem with you continuing to make payments… that’s what they want. In many cases, they will even settle with you if you provide them with a lump sum. It’s all about the time value of money. They would rather have a large amount now, rather than wait 20 years because that money is worth more now than in 20 years. We settle notes and have settled millions for homeowners and most of the time we can negotiate a full payoff around 10% – 20% of the loan amount. So instead of paying $54K over 20 years, they might settle for $10K up front today and wipe it out. It’s always worth a shot, you have nothing to lose.