A home equity loan (HEL) is a unique type of mortgage, which allows you to tap into your home’s value to take out cash. There are many reasons to take out a home equity loan, including debt consolidation, home improvements, or paying for college.
You can take advantage of rising home prices, or the fact that you paid off your mortgage and the balance decreased to take out an additional mortgage.
A Home Equity Loan is similar to a purchase mortgage or a refinance mortgage. You take out a lump sum and repay it in monthly payments over a set repayment period. When shopping for a HEL, consider the interest rate, lender fees, and third-party fees.
For more information about a home equity loan and how it works ...Read More
I received charged-off papers on a home equity loan a couple of years ago and I thought that charged-off meant I was free from the debt. So about a few weeks ago I received more papers in the mail from a second or third party that bought the home equity loan from my bank and there telling me if I don't pay the full balance $10,900 in 30 days they're going to take my house. and do I have to pay the full amount all at once? I asked them if they could wave the finance charges they said no.
Bridget, I can't give legal advice, as only an attorney can properly do so. Here are a couple of thoughts, with the understanding that I am not giving you legal advice.
First, a charge-off doesn't mean you are no longer responsible for the debt. It relates to how the lender shows the loan on its books.
I can't tell if the debt collector is being fully accurate. Do you have a first loan that still has a balance or is the Home Equity Loan the only loan. If it is not the only loan, then they can't foreclose without paying off the first mortgage lender. Is there sufficient equity to do so?
Do you know the value of the home today and what you owe on any mortgages on the property?