1st mortgage & equity loan on house ridge foreclosing?
If I stop paying my bank on the 1st mortgage, the bank will foreclose my house, how roughly the equity loan that I own, will it still be on me even the bank took the house back?
Answers:
The primary mortgage holder will deal in the hose cheap. The proceeds will first go toward the cost of foreclosing and selling. Next the remainder will go toward the first mortgage. If anything is smaller number, it will go toward the equity loan. You STILL owe and remaining balance on BOTH loans. The loan is on YOU, not the house. The LIEN simply give the right to foreclose and first shot at proceeds of the sale.
I used to work in the mortgage industry briefly, so I'm not truly qualified to answer that sound out. From what I've heard, its an equity loan, so it shouldn't, but in various cases I've heard, some banks still come after you. I would right to be heard it would be best to call them, but you'll just be placed on hold for a while, and usually their answer, even if they know the valid answer, would be to pay back the loan. If you foreclose, your credit is already harmed, so agree to bank with the equity loan hassle you a bit if they do. The harm is done, nothing more they can do.
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Answers:
The primary mortgage holder will deal in the hose cheap. The proceeds will first go toward the cost of foreclosing and selling. Next the remainder will go toward the first mortgage. If anything is smaller number, it will go toward the equity loan. You STILL owe and remaining balance on BOTH loans. The loan is on YOU, not the house. The LIEN simply give the right to foreclose and first shot at proceeds of the sale.
I used to work in the mortgage industry briefly, so I'm not truly qualified to answer that sound out. From what I've heard, its an equity loan, so it shouldn't, but in various cases I've heard, some banks still come after you. I would right to be heard it would be best to call them, but you'll just be placed on hold for a while, and usually their answer, even if they know the valid answer, would be to pay back the loan. If you foreclose, your credit is already harmed, so agree to bank with the equity loan hassle you a bit if they do. The harm is done, nothing more they can do.
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