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I thought a home equity or a heloc as sometimes referred to can only take action if the first mortgage institution forecloses on the property. Can a second position initiate foreclosure?

2007-08-13 03:01:45 · 7 answers · asked by eddie a 2 in Business & Finance Renting & Real Estate

7 answers

YES DUHHH

2007-08-13 03:09:00 · answer #1 · answered by boy330 3 · 0 0

Spend a few hundred dollars to get a buyers home inspection so you know exactly what the cost of the work will be. You may be able to negotiate a lower sales price. But, no, you need equity in your house to get a home equity loan. Especially in today's market.

2016-05-21 05:44:39 · answer #2 · answered by ? 3 · 0 0

Of course that is why the home is used as collateral and the home equity people have just as much of a right as the Primary lender to foreclose and get their monies.

2007-08-13 03:09:54 · answer #3 · answered by Anonymous · 0 0

Yes! All they need to do is pay off your principle mortage holder after forclosure and they own the house, or they can let the principal mortgage holder pay them off and they then get the house. Usually that is profitable either way since real estate increases in value. Most of them won't forclose just because you are late on one payment so if you are that far behind you leave them no choice.

2007-08-13 03:18:51 · answer #4 · answered by Robert P 5 · 0 0

Of course. They have a lien on the house as collateral, if you do not pay they will foreclose. Why would the lend you money if they had no recourse? No one would pay them if that was the case.

2007-08-13 04:29:49 · answer #5 · answered by frankie b 5 · 0 0

yes -- they can foreclose

afaik, there is no state or foreign jurisdiction [WHERE is this?] that restricts such forecloses ... the point of taking a secured position in the house is to make sure you make your payments and, if you don't, that there is some hope of getting their money back out of the house.


oh

2007-08-13 03:06:54 · answer #6 · answered by Spock (rhp) 7 · 0 0

Yes, you already agreed to give them your house if you flaked on your commitment to pay them back the money they gave you.

They can, and will foreclose if you give them no other options. You took their money, you need to pay if back just like any other loan.

2007-08-13 04:35:21 · answer #7 · answered by Landlord 7 · 1 0

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