Even if your home is sold in foreclosure, you may still be on the hook for the difference between the amount you owe the bank and the amount the property sold for. Years later, the bank may come after your paycheck to recoup there losses. Unless, of course, you live in a non-recourse state. In [...] [...more]
Foreclosures seem to be slowing, but the country still isn’t in the clear. If your home is in danger of facing foreclosure becuase of a HELOC in default, it’s important to have some idea of what the bank will do. Here are the five primary ways HELOC foreclosure situations play out: The homeowner is given [...] [...more]
HELOC tax deductions could save you thousands when you file. To put it simply: If your HELOC was used to improve your home, you may deduct interest on lines up to $1 million ($500,000 married filing separately). If your HELOC used for other purposes, you may deduct interest on lines up to $100,000 ($50,000 married [...] [...more]
New credit card legislation takes effect later this month. However, borrowers have already encountered negative consequences from the more stringent requirements including reduced lines, higher fees, and increased interest rates. Borrowers dealing with undesirable changes from their credit card issuers may be able to mitigate some of these problems by transferring their debt to a [...] [...more]
Need to repair your roof or update your kitchen? In many cases, a HELOC can help you borrow money at a lower interest rate than a credit card or unsecured loan. New Jersey Business News explains: “The closing costs for a home equity product are often substantially less than those associated with a first mortgage, [...] [...more]
Now that HELOC rates are so low, many borrowers are looking for smart ways to use their lines. In a recent Scripps News column, a reader asked if he should use a HELOC to pay off his car loan. Columnist Steve Bucci pointed out both the pros and cons and said that the reader should [...] [...more]
Now that HELOC rates are so low, many homeowners are tempted to pay off their original home loans with home equity. While this strategy may seem like a smart move at first glance, there are some serious risks. Banking My Way explains: “…There is a serious problem — because HELOC rates are variable, you can’t [...] [...more]
Some financial experts advise clients to take out a HELOC as a security against potential job loss. But, this strategy only works if the homeowner is currently employed when the equity loan closes. WalletPop reports: “That’s a possible step to take before you lose your job, but not after you’ve lost it. Why? You most [...] [...more]
For a small number of homeowners, the mortgage crisis has created the “perfect storm”: rates have dropped significantly but their HELOC limits have stayed the same. For those who have a home equity line of credit with a limit exceeding the principle owed on their original home loan, it can be tempting to pay of [...] [...more]
Many retirees have trouble choosing between a home equity line of credit (HELOC) and a reverse mortgage. While HELOC loans are more widely available, reverse mortgages can only be taken out by homeowners over the age of 61. A recent release on Fox Business explains: “Reverse mortgages have become an increasingly important financial tool for [...] [...more]
