Can you lose your home if you are not paying your line of credit?

Posted on: 15th Feb, 2011 09:45 am

My grandparents has a mortgage and a line of credit taken out on their house. I helped them to get a loan modification on the first mortgage the line of credit was with Chase and they denied them and sent the loan to credit lawyers, I attempted to contact the lawyers for three years but no answer now I get a letter for them stating they need to pay this or they will lose their home can this happen?

Total Reply : 4

That is so sad to hear. I really feel for your grandparents if ever they bound of loosing their home. The best thing I think that you're gonna supposed to do is to consult a home loan expert from a reliable company. Tell them about what really happen. I'm pretty sure that they can provide you the best solution / ideas about your current situation.

sabrinatoss

Posted on: 15th Feb, 2011 09:34 pm

hi blwkjb,

your grandparents will have to pay off the home equity loan or the lender can foreclose the property in order to recover the dues. i will suggest your grandparents to negotiate with the lenders and set up a payment plan to pay off the dues in order to save the property.

thanks

jameshogg

Posted on: 15th Feb, 2011 11:11 pm

the line of credit is a second mortgage and the second mortgage can start foreclosure proceedings. however, if the first mortgage is being paid on as required, the first mortgage lender may not be inetrested in foreclosing and the second mortgage lender can not complete the foreclosure without the first mortgage foreclosing also.

i know there is a first and second mortgage, however, is there by any chance equity in the porperty or do the balances of the two mortgages use up most or all of the equity?