Posted on: 22nd Aug, 2010 09:41 am
i'm interested in a deed in lieu of foreclosure on my house but i also have a home equity line against the house. what are the steps when this is a factor?
hi donnamd,
though your property has a home equity loan on it, you can still apply for a deed in lieu of foreclosure with your first lender. you need to contact your first lender and apply for the same. the first lender can accept the request and sell off the property to recover the dues. he won't come after you for the balance resulting from the sale. however, the second lender has the rights to come after you in order to recover the dues. if you do not pay off the dues, he would simply charge off the loan to a collection agency who can harass you for the payments.
though your property has a home equity loan on it, you can still apply for a deed in lieu of foreclosure with your first lender. you need to contact your first lender and apply for the same. the first lender can accept the request and sell off the property to recover the dues. he won't come after you for the balance resulting from the sale. however, the second lender has the rights to come after you in order to recover the dues. if you do not pay off the dues, he would simply charge off the loan to a collection agency who can harass you for the payments.