Foreclosure University

Your Online Real Estate Investing Resource

HELOC

I have a mortgage and home equity line of credit I am in Florida. If my property is foreclosed upon what happens to the equity line of credit?

by 2 Comments

Question: I have a mortgage and home equity line of credit on the same property with Countrywide. I am in Florida. If my property is foreclosed upon what happens to the home equity line of credit? Also am I held liable for taxes up to the foreclosed date?
Thanks

Answer: -If your home has a first and second with the same lender, Countrywide, it’s almost treated like it’s one loan. If they send it through foreclosure, they’ll probably start at just what’s owed on the first and hopefully get someone to bid on it…If no one bids then they’ll end up with the property. Then they’ll probably write off that 2nd in which they could file for a deficiency judgment but more than likely they will 1099 you for that amount they lost and you’ll have to pay taxes on it. As for the property taxes, they’ll have to pay those in order to sell it to an end buyer.

I own a home in Florida. We owned the home outright and then got an equity line of credit.

by 2 Comments

Question: I own a home in Florida. We owned the home outright and then got a home equity line of credit. We have not made a payment in 2 years!! I heard they can not evict. Is this true? I call and email them all the time and they never respond.

Answer: -You haven’t made a payment in two years and you own the home outright beside a small line of credit…You are crazy for not making that payment unless the home is not worth what you owe on the home equity line of credit. No they can’t evict you…yet! Once they foreclose on the property they can evict you. I would try to get something worked out quickly especially if you have a great deal of equity in your home.

I have a home equity line of credit. I can’t afford to make the payments. Can the lender foreclose?

by 2 Comments

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

I own a home in Southern California. I bought the home using my VA benefits.

by Leave a Comment

Question: I own a home in Southern California. I bought the home using my VA benefits. I am 3 months behind in my mortgage. It doesn’t look like the mortgage co. (Countrywide) is going to modify the loan so that I may keep it, already contacted HUD and they sent a modification proposal to Countrywide 30 days ago but Countrywide has yet to receive it. My question is, I owe $64,000 on a Home Equity Line of Credit I got through Washington Mutual Bank on the house. If Countrywide forecloses, do I still owe the Equity Line of Credit? Will Washington Mutual come after me for the money? I owe $220,000 on the house, it was just appraised at $175,000. Thank you.

Answer: – California may be one of the few states where they don’t come after you for a deficiency judgment. If your home is foreclosed on, typically they will 1099 the borrower for the amount they lost. However, VA loans have special exceptions. With VA loans, I believe they may have the right to come after you for the deficiency judgment. You may want to check with an attorney in California on this, but it seems like that’s what I remember.

If my home goes into foreclosure what happens to my Home Equity Line of Credit?

by 2 Comments

Question: I live in Idaho. If my home goes into foreclosure what happens to my Home Equity Line of Credit that is attached to the value of the property?

Answer: -Your home equity line of credit (HELOC) gets wiped out if no one bids. Then, typically your 2nd lien holder will 1099 you or file for a deficiency judgment. It’s more common to receive a 1099.

Arizonas (anti-deficiency state) law when foreclosed on

by 1 Comment

Question: I have a home in Arizona [anti-deficiency state] that was purchased with an 80/20 loan. I have never refinanced the loans. We were in the process of negotiating a short sale, got approval from the first [with Country Wide] and they agreed to pay the 2nd [Citi] $3k, when we went back to Citi to get final approval we discovered that they charged off the 2nd and sold the loan to a subsidiary which has now turned it over to an attorney that claims they are going to file a deficiency judgement against me and collect the debt. They claim that since it was a second mortgage and it was charged off that they can do this. It was a second but it was a “purchase money” loan. Can they come after me for the deficiency?