Posted on: 10th Oct, 2009 11:02 am
what happens if i default on a home equity loan?
That will for sure impact your credit report
The lender may come after you or sell it to a collection agency and they cna come after you
Any one of them can take pocession of yoru assests after a judgement
There is a good possibility that they may also take out money from yoru checking and savings account
The lender may come after you or sell it to a collection agency and they cna come after you
Any one of them can take pocession of yoru assests after a judgement
There is a good possibility that they may also take out money from yoru checking and savings account
Hi kim,
When you signed the mortgage promissory note, you promised to pay off the loan in full. If you default on the loan, the second loan holder is most likely to start foreclosure proceedings on your properties to recover the outstanding balance. In case the sale of the house does not repay the loan in full. They will come after you for the deficiency and obtain a judgment against you, if you do not pay it off.
When you signed the mortgage promissory note, you promised to pay off the loan in full. If you default on the loan, the second loan holder is most likely to start foreclosure proceedings on your properties to recover the outstanding balance. In case the sale of the house does not repay the loan in full. They will come after you for the deficiency and obtain a judgment against you, if you do not pay it off.