Posted on: 30th Mar, 2009 12:27 pm
I Own my home (no 1st mortage) but, I have a HELOC thats due
I have a HELOC that is due by June 20th of $38,000.
I own my home with no mortgage and it was appraised at $280,000.
I can't pay the $38,000 by that due date and my credit and income may prevent me from being able to re-finance the remaining balance.
What options do I have here?
Can the lender actually put my house, that has way more value than the balance, in foreclosure?
I am very nervous and not sure what I CAN DO?
I have a HELOC that is due by June 20th of $38,000.
I own my home with no mortgage and it was appraised at $280,000.
I can't pay the $38,000 by that due date and my credit and income may prevent me from being able to re-finance the remaining balance.
What options do I have here?
Can the lender actually put my house, that has way more value than the balance, in foreclosure?
I am very nervous and not sure what I CAN DO?
Hi vmangine,
If you are facing hardship in paying off the mortgage dues, you should contact the lender and check out the option of loan modification. If the lender agrees to modify the loan, then he would give you an alternative repayment plan which will help you in paying off the mortgage dues.
Yes, if you do not pay the mortgage dues, the lender has the right to foreclose the property.
Thanks
If you are facing hardship in paying off the mortgage dues, you should contact the lender and check out the option of loan modification. If the lender agrees to modify the loan, then he would give you an alternative repayment plan which will help you in paying off the mortgage dues.
Yes, if you do not pay the mortgage dues, the lender has the right to foreclose the property.
Thanks
Thank you, i will check with them.....but, thats what I kind of meant. What are my options if they don't agree to a loan modification?
Hi vmangine,
If the lender doesn't agree for a loan modification, then you can apply for a short sale or a deed in lieu. Both of these will effect your credit score negatively but it would be better than a foreclosure.
If the lender doesn't agree for a loan modification, then you can apply for a short sale or a deed in lieu. Both of these will effect your credit score negatively but it would be better than a foreclosure.
If you cannot make anything happen with your current lender, I would suggest a hard money "bridge" loan or explore options of no-doc loans. I would recommend escrowing a few months payments to give yourself time to adjust to the payments. A hard money loan comes with a high interest rate and fees, but the positive is they will escrow 6-12 months worth of payments at the table. Therefore, you will not be due for a payment for possibly the entire term of the loan which typially range from 1-3 years. No-Doc loans are still available, with an interest rate 1-5% above the conventional rates. The no-doc loans are based on credit, while the hard money is solely based on the equity of the property in which is used as collateral. I hope this helps....
