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I have a home equity loan

Posted on: 16th Sep, 2009 06:46 pm
i am currently having a home equity loan, a baloon type.
next year is coming the term to repay the loan almost in full. because i did a lot of improvements in the house with these money and nobody these days would release me another loan to pay the baloon because the value dropped dramatically, i would not be able to repay.
i called the bank for negociations, soliciting to change the loan for better conditions. they refused. since they refused, i stopped the payments. being a second loan and in secondary position accordingly, if i do make payments on first but not second what they can do other then seeking foreclosure(but they should realize very well that if they will obtain foreclosure would be no way to recover debt because would be nothing left for them after sale)?
they would have another means to recover debt or finally will open a negociation?
thank you for your time
Hey nicolaeciochina,

Your second lender can simply charge off the loan to collections. The collection agency will in turn collect the dues from you. This will also be mentioned in your credit report which will drop your credit score by some points.
Posted on: 16th Sep, 2009 08:26 pm
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