Posted on: 13th Jan, 2009 08:03 pm
In California, if I stop making HELOC payments can they seize monies in other accounts with them?...I am upside down by about $75,000 on my primary residence mortgage. The payments are $3,100 on the 1st and $500 on the 2nd. Both are carried by Countrywide. My 2nd home is worth about 50% of what I owe on it. It is currently rented, but it is negative $600 monthly. The payments on it are $1,400 1st to Countrywide and $300 2nd to B of A. I have never been late on any of the loans, and have no credit card debt. I was downsized in January 2008 and worked at odd jobs for 6 mo. last year. I have not worked since November 08. Jobs have dried up and unemployment will run out soon. I have about 60K in liquid assets, if I drained and sold everything. Any advice?
Hi blazo!
Welcome to forums!
If you stop paying the mortgage, the lender will have the right to foreclose the property. A foreclosure will badly affect your credit. However, as far as I know, California is an anti-deficiency state and the lenders cannot claim the deficient amount resulting from the sale of the property.
In my opinion, you should speak to the lender about your hardship. If you want to sell off the property, check out if the lender is ready to do a short sale or a deed in lieu.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
If you stop paying the mortgage, the lender will have the right to foreclose the property. A foreclosure will badly affect your credit. However, as far as I know, California is an anti-deficiency state and the lenders cannot claim the deficient amount resulting from the sale of the property.
In my opinion, you should speak to the lender about your hardship. If you want to sell off the property, check out if the lender is ready to do a short sale or a deed in lieu.
Feel free to ask if you have further queries.
Sussane