I got a $350k home equity loan 6 months ago, and the business I was hoping to start making profit turned out otherwise... To make things worse, as it turned out my house had no equity and the loan was issued to me erroneously. Now that I have no money and no equity, what are the consequences? What should I do to lose the least and come out of the situation as soon as possible and with least damages?
2007-11-26 12:55:47 · 3 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Jerrold:
As it turned out the house DIDN'T have equity to begin with, so really, the bank shouldn't have given me the loan to begin with. It's not that the house doesn't have it BECAUSE i took the loan, it's that it DIDN'T have it and now I also owe another 350 on top of my initial mortgage for SOMEBODY at the loan office THINKING IT DID and making me that offer.
When I was taking the loan, it was clear to me and clear to the bank that the money is to be used for developing a business. However, whoever's fault it is some businesses fail - so now I'm not in the situation to find the person to blame (be it me or my partners) but in a situation where I have to deal with consequenses. I don't want you to wave a wand, I want to get some insight as to what are my options to NOT end up in debt after I give the bank back the house.
2007-11-27 08:58:59 · update #1
Let's see, YOU took out a loan and no longer have the money. YOU own a house that has no equity because of the loan YOU took out and spent on other purposes. And NOW you are trying to say "erroneous" 6 MONTHS AFTER the fact?
The "consequences" are that YOU have misanaged YOUR funds and it is YOUR fault. You bought the house. YOU took out a loan. YOU spent the money.
YOU need to learn how to manage YOUR money and to take personal responsibility for YOUR actions.
"as it turns out" is something YOU caused to happen.YOUR business that "profits turned out otherwise" is something YOU did.
What do you want us to do? Wave a wand?
2007-11-26 13:28:09 · answer #1 · answered by Jerrold J 3 · 0⤊ 0⤋
you have have been given an incredibly in touch challenge there. it is going to probable be rather trouble-free to be certain in case you are able to declare the abode purchasers credit. you assert you probably did no longer very own a house throughout that element on account which you signed over the loan. Did the loan company take you off the loan? Or did you and your spouse only have an contract on the realm (criminal of path)? The Irs will decide on if an contract between you and ex is valid adequate to contemplate you a non-belongings proprietor, in an attempt to talk. As for the own loan, that must be ok. you're paying lower back money that became into borrowed once you owned the abode. i think of the actual situation right it rather is how the IRS will look at an contract between you and ex. If, of path, the loan company launched you from the loan then you incredibly would desire to be ok. Take all your workplace work, surprisingly the divorce decree and your hire receipts, exhibiting you have been renting over the previous 4 years. sturdy good fortune
2016-11-12 21:19:28 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Geez, somebody at the lender's office really screwed up to miss by that much on your equity! That said, you owe the money, and they can take your house if you can't or don't pay it, and you could still end up owing some of it after it's taken.
Good luck.
2007-11-26 13:15:28 · answer #3 · answered by Judy 7 · 0⤊ 0⤋