If I default on my HELOC and continue to pay on 1st mortgage can the HELOC mortgager initiate foreclosure.?
Question:
Do they contact the primary mortgage holder for permission to inititate foreclosure? Can the primary mortgage holder stop foreclosure?
Answer:
They can initiate foreclosure all by themselves without the primary mortgage holder. They generally won't as in a foreclosure the primary lien position gets paid off first and the secondary lien gets paid if there is anything left over- but they can and will if you stop paying. Maybe you should just try and refinance your home into a better program that will allow you to keep it and maintain the payments.
Yes they can but only if it is a profitable. It depends on how much equity you have after the loans are combined.
A way to avoid foreclosure. Deposit your paycheck into your heloc account. That will cover your payment and then pay your bills out of the heloc account.
Yes the holder of a 2nd Mortgage(HELOC) can initiate foreclosure if you fail to meet your obligation. They first contact the title holder who is usually the escrow company and begin officially serving you with notice. The Original lender can not stop the process however they are the first payed after the sale of the home with what ever remaining being paid to the HELOC and finally to you if any is left.
Yes your HELOC holder can foreclose because your home is collateral for the loan. Does not matter if your 1st is paid up or not. A HELOC is a Home Equity Line Of Credit supported by your home for repayment. they do not have to contact the primary at all either. <At least in California>
Yes, but depending on the property value, your equity and a few other things, many first position lienholders will pay off your second and add the amount to your first mortgage. That will in effect "stop" the foreclosure action, but may leave you with a payment that is higher than both of your old payments were.
See if your lender will offer a forbearance modification if you can demonstate that you can pull out of this situation.
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