Answers
If I can not pay a home equity line of credit with one bank but I continue to pay the 1st mortgage what action does the home equity line of credit holder take? Both loans are up to date, but I will be unable to pay the HELOC much longer. I do not live in the property in question. It is vacant and with a realtor but it is in Florida and the value is dropping almost daily due to the crisis in the real estate market in florida. Should I let the banks forclose?
You never want to let them foreclose on you, period. I am sure you still have equity in your home. You should try and sell or refinance, and yes, they still will refinance you with those late payments. What you need to know if what your home is worth and what you owe on the two loans total. If you could refinance the two together and get one loan and a lower rate/payment, you should be fine. If you are not going to pay one of them, I think the 2nd is what not to pay, but that payment is probably much less, right?
I just realized you said it was vacant with a realtor and CONTRARY to what many think, you CAN refinance even if a property has been listed for sale lately. Just change the status to cancelled or withdrawn and talk to a mortgage broker that knows the business well. Even vacant homes can be refinanced. I would suggest trying to refinance and have your realtor list this for rent. I am sitting on a vacant home in Cape Coral FL that I already did a cash out refinance on and it has been vacant almost a year. It sucks to use the equity in the home to keep it going but it is better than getting late payments and/or foreclosure.
Earn a home of your own if you can take this prety Holifday Florida (Tampa Bay) in as is condition and care for it like you own it already. Famous ...
I need to get a credit line (not a credit card) but my home has no equity. I was told that if I put cash into a CD that I can get a CD line of Credit but I don't know which banks offer them? Does anyone know which bank will offer me a CD Line of Credit in the US more specifically in the Florida/Georgia area? Thanks.
BOA
My Florida Home Buyer » The Danger of Home Equity Loans to Be Aware of
Also known as HEL, home equity loans, represent a type of loan that allows a borrower to use the home equity as a collateral. The most common situations for the use of such loan options include medical bills, house repairs, college education and other situations of emergency when money is needed urgently. By home equity loans, there will be a lien created for the home.
People with a bad credit history will most certainly have difficulties in getting home equity loans, and, the combined loan-to-value ratios should be reasonable. There are two types of home equity loans, some with closed end and some with open end; yet, lenders usually talk about these two types in terms of secondary mortgages because the guarantee for the borrowed value is the property itself. Let’s see what the two variants of home equity loan involve.
...News
New Chief at Bank of America Seeks Credit-Card FixWall Street Journal - Dec 29, 2009
The moves were part of a larger strategy to achieve dominance in nearly every category of American finance, from mortgages and home-equity loans to and more »Wall Street Journal - Dec 22, 2009
The Business AgeNew home equity credit lines are also down sharply this year, with lenders growing more selective, approving credit lines for a greater portion of low-risk Equifax Data Show U.S. Consumer Payment Trends Continue to DeteriorateEquifax: HELOC Origination Down 36%all 28 news articles »
USA Today - Dec 29, 2009
Texas' now-strong banks hold lessons for rest of USNow, total mortgage debt — including home-equity loans — cannot exceed 80% of a home's value when the loans are made, and Texas homeowners cannot take out and more »Bankrate.com - Dec 25, 2009
Equifax also noted a decline in new home equity credit lines during 2009, with originations down especially sharply in California and Florida. and more »
RenewableEnergyWorld.com - Dec 30, 2009
A related development is the growing use by utilities of investor equity, tax equity or pools of tax equity capital to develop projects. and more »Subprime Blogger (blog) - Dec 24, 2009
New York Daily NewsIf you have a credit score that is well below 650 and you do not have equity in your home then there is very little chance that you are going to get a Few borrowers helped by modified mortgagesall 294 news articles »
Reuters - Dec 30, 2009
Special Report: America's route to recoveryFrom its peak in 2005 to the second quarter of 2009, US home equity fell 37 percent, or $4.7 trillion, according to the Federal Reserve. and more »