Posted on: 03rd Feb, 2011 10:39 am
The primary mortgage balance is more than double the HELOC balance. It seems from your other answers here that the HELOC lender may charge off the loan, rather than foreclose and have to pay the lender for the first. So what's the consequence of that (apart from the moral issues)? I guess just bad credit?
Hi aflesch,
After the charge off, the loan is sold off to a collection agency who will in turn contact you for the payments. Apart from this, it will have a negative impact on your credit report.
Thanks
After the charge off, the loan is sold off to a collection agency who will in turn contact you for the payments. Apart from this, it will have a negative impact on your credit report.
Thanks