if I can't pay my home equity loan, what happens, does it turn into a lean against my house or can they actually forclose on my house

A home equity loan is actually a second mortgage on your home. It became a lien on your house the minute you signed the papers. If you don't make the payments they can foreclose.

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Originally Posted by LisaB4657

A home equity loan is actually a second mortgage on your home. It became a lien on your house the minute you signed the papers. If you don't make the payments they can foreclose.

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So even though the loan is only 17000 and my house is worth 130,000 the house would go under foreclosure? The house is a Fannie May or Fha home, does that make a difference, I am paying it though a bit behind, just wanting to know and I really appreciate you helping me. Thank you

Sorry but yes, it would still go to foreclosure.

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Originally Posted by LisaB4657

Sorry but yes, it would still go to foreclosure.

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Is there such a thing as a line of credit home equity loan? I think that is the one I have. Thank you so much for you r help

Home equity line of credit is a version of a second mortgage but you do not take the money all up front. It's a bit like a big check book where the bank gives you a line of credit, usually at a much better rate than your original mortgage. I can't tell you to stiff other creditors but mortgage and HELOC are two types of loans you need to keep up with.

Yes, the home equity line of credit is also a second mortgage. You get approved for a maximum amount and you sign a second mortgage for that amount. Even if you don't take the full amount that they approved there is still a second mortgage. If you fall behind on any of the payments they can declare that you are in default and then start foreclosure proceedings.

I'll chime in with my 2 cents as well... the consequences are the same for defaulting on anything when your home is used for collateral. I'm sure you don't want to lose your home over $17,000. Plus, since it's such a major loan, you'll ruin your chances of getting another one any time soon.

Is bankruptsy out of the question for this also, sorry if I misspelled

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Originally Posted by honey5

is bankruptsy out of the question for this also, sorry if i mispelled

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Thank you everybody for all your help. Very much appreciated

It's not out of the question but there are a lot of options you can explore before you take a step like that. You can look into the possibility of getting a loan modification to lower your payments or refinancing your first mortgage to pay off the second.