Home Equity Loan
my friend had a home equity line of credit?
recently he got a letter from home equity line of credit bank's attorney saying that they are trying to collect debt and all that, he doesn't have the money any more so what happens, now, what are his option filing a bankruptcy or?
Public Comments
- Sell the house and pay the man.
- He would have to sell the house if he wants to dismiss this via a bankrupsy.
- He will be foreclosed against and bankruptcy will not save his house. He can try a short sale or better yet a deed in lieu. He can also try to sell his house on his own but that is about it.
- This type of thing is happening more frequently now days. He could go to the company that holds the first and explain what has happened and if they would consolidate both loans to his 1st deed of trust. This would require that the combined loan amounts don't exceed 80% of the value of the house. Some banks may go as high as 90% but then there would be Mortgage Insurance. If they won't refinance, sell the house and you may be in a short sale situation which will be difficult at best with 2 seperate loans and loan companies. Also he needs to talk to both banks and find out what their requirements for a short sale are. They may not consider it if he is not in default, which means he is up to date with payments. I hope this helps and your friend is not alone! This is a tough decision because your good credit is at risk.
