Debt Consolidation Forums Bankruptcy Chapter 7 and Chapter 13 forums

Follow up to my other thread: Bakruptcy Advice

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Regarding the HELOC i have 150k on. I remember reading somewhere that some companies instead of foreclosing on the house are writing off the HELOC, and instead just putting the balance of the HELOC on the house as a lien when you sell it. So basically when I sell the house, they'd take 150k from what I get. Is this true? Thanks.

I haven't heard of that, but maybe someone else has. It might make sense if you owe more money than your house is worth because then there wouldn't be any point to foreclosing if they hold second place to the first mortgage. However, it would make less sense for them to do that if your house is worth enough to cover the first mortgage and the second mortgage both, because then they could get their money now by foreclosing.

Sub: #1 posted on Fri, 07/25/2008 - 10:07

alias1958 alias1958

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