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?
home equity line
home equity line default
Question: I work for the bank that holds my home equity line. I do not want to default on it. (It is only a 10k heloc) Can I just continue to pay on it if my mortgage loan is defaulted on?
Answer: You are free to continue to pay on it if you want. However, you have to realize that sooner or later, the bank in first position will foreclose on you. And if there is no equity in the home, more than likely your 2nd will be wiped out, regardless if you made your payments or not. To me, it doesn’t make sense to make payments on the 2nd if you are not making payments on the 1st mortgage. In the end, your bank will still want the $10k that you borrowed, which you can gladly workout some sort of settlement with them until it’s paid off. Offer them payments over 10 years like you agreed on or give them $2000 upfront as a full payoff. They’ll treat it just like any other defaulted loan even if you work there. What you do want to try to avoid is a deficiency judgement. You want to try and get a full satisfaction so they can’t file a judgment against you.
Short sale on a property what about home equity line that was not paid off?
Question: I had a short sale on a property in 2010 and I have a second home equity line that was not paid off. they say I owe the full amount. Can I declare insolvency and not have to pay ?