What is the process and consequences of default on a home equity loan?
With either a home equity loan or credit line, when the debt is in default, the lender can foreclose on your house and property. The foreclosure process varies from state to state, but generally takes from two to 18 months. It all depends on the terms of your loan. However, normally if mortgage payments are not received within 150 days, the bank can proceed with the foreclosure process. The home equity products would be repaid after the first mortgage is paid in full. Please consult your lender for details. I will provide you more information in just a moment.
In case you are having problems with keeping up with your payment you should try and contact your lender to work out a payment arrangement. It is always better that you are active rather than reactive in matters such as this.
Foreclosure can be one of the most horrible financial experiences. You end up defaulting on too many mortgage payments and your home is taken away from you. Not only do you lose your home in foreclosure, but it can have a long-lasting impact on your credit rating.
Foreclosure is a serious situation that has serious repercussions. If you can, you want to avoid a foreclosure as much as possible. Bills.com is here to help. If you are in over head in debt, which is causing you to miss mortgage payments, we can help you get a debt consolidation loan (Debt Consolidation Options) to handle your debt and avoid a foreclosure. We also offer helpful guides, foreclosure FAQs, glossary terms and other helpful tools to help you keep your home and avoid a bank repossession. You are in good hands with Bills.com.
You can find more in depth information about foreclosures on our Bills.com Foreclosure page.
I hope this information helps you Find. Learn & Save.