Your home will foreclose What will happen to the balance you have on your equity line of credit obtained from?

Question

My friend has a home equity line of credit and plans to foreclose on his home. Will he be responsible to pay for his line of credit afterwards or will that be considered a part of the foreclosure?

Answer 1

The home owner is responsible in FULL for all mortgage and loan contracts made against the home .

$$$$ received from the foreclosure sale will be deducted from his amount owed and they will be liable for the difference .

EG : mortgage and heloc is $300K , foreclosure gets $200K , they will owe $100K still .

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