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HELOC foreclosure question

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gcoltrin Joined: 11 Apr 2011 Posts: 1 1.39 Dollars($)	Posted: Mon Apr 11, 2011 12:46 pm    Post subject: HELOC foreclosure question Like 0 Dislike 0 My home in Florida is now only worth $88k. The first mortgage is current but the balance is $111k. The HELOC is with another bank, and has a balance of 167K as an interest only ARM. I am 10 months behind in payments of the HELOC and was told that it went to their foreclosure dept last month but have not heard anything otherwise. I have no assets, except for a small condo in Mexico. Can the HELOC foreclose and hold me responsible for the deficiency by garnishing my wages or placing a lein on the property? Can they take the property in Mexico towards a deficiency judgement? Not sure what the best thing do do here is. Kevin
smithsussane Joined: 18 Sep 2008 Posts: 10439 Location: Alaska 985.83 Dollars($)	Posted: Mon Apr 11, 2011 8:32 pm    Post subject: Like 0 Dislike 0 Hi gcoltrin! Welcome to forums! If you do not pay off the HELOC, then the lender can foreclose the property and you'll be liable for paying off the deficient balance. However, there are high chances that they won't foreclose the property rather they will charge off the loan and assign it to a collection agency. In order to place a lien on your property in Mexico, they will have to file a lawsuit and get a judgment against you. Feel free to ask if you've further queries. Sussane
dipaligopale Joined: 25 May 2010 Posts: 790 22.70 Dollars($)	Posted: Tue Apr 19, 2011 1:18 pm    Post subject: Like 0 Dislike 0 Hi gcoltrin, Welcome to Mortgage fit, Lender may put a lien on the property for the deficient amount.but in order to garnish the wages, lender need to get an order from the court for the garnishment. But before garnishment, you have plenty of options,either to go for DIL and Bankruptcy as well.So why one should wait for the garnishment.if in near future you are not planning to buy any home or car (approx.7-10 yrs) then I will suggest you to go for firstly DIL and if lender is not ready for it then bankruptcy is one of the choice. You can go through these links for further information on the subject matter related to DIL http://www.mortgagefit.com/deed-lieu.html As far as information related to bankruptcy is concerned you may visit this link. http://www.mortgagefit.com/bankruptcy.html If you spend some time going through these links surely you will get enough knowledge to get out of the troubled situation.You know, Knowledge is power. Feel free to ask any further query if you have.... DIPA _________________ 1.The best of intentions must still have directions !--Unknown author 2.When I hear somebody sigh, "Life is hard," I am always tempted to ask, "Compared to what?" - Sydney J. Harris

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