Ask Experts Questions for FREE Help !
Ask
    samuelluvsliz's Avatar
    samuelluvsliz Posts: 36, Reputation: 1
    Junior Member
    		  
    #1

    Mar 9, 2009, 06:00 PM
    Home equity line problems
    Our house is going towards foreclosure but I was told that if we loose our home the second mortgage which is a home equity line of credit can sue us for the debt owed?? :confused: Is this True?
    stevetcg's Avatar
    stevetcg Posts: 3,693, Reputation: 353
    Ultra Member
    		  
    #2

    Mar 10, 2009, 12:40 PM

    It is true, yes. But it is unlikely. Its typically not worth the effort of a second note holder since you just had your house foreclosed... bankruptcy is a minor step from there. They would pay legal fees for the process to collect nothing. Technically the mortgage holder can sue you for the difference between the amount owed and the amount gained from the sale of the foreclosed property.

    What WILL happen is when the house sells, you will be given a 1099 for the difference between the amount owed and the sale price. You will owe taxes on this.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Parent Death - Home equity line of credit [ 7 Answers ]

Hello: My father died in April. His insurance did not cover his funeral, had to take a loan out to pay for it. Notified his creditors of his death. He had taken out a home equity line of credit on his house many years ago. It has a $40,000 plus balance. In 2000 he transferred his 2 homes into my...

New home addition -home equity loan or remortgage [ 1 Answers ]

I am 54yrs old and have only 3 yrs left on mortgage.. I want to put on a new addition to house and looks like I will have to borrow $80,000.. Do I want to do home equity or remortgage? I would like to retire in 11 yrs or less

View more questions Search