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As it has become more difficult to take out a home equity line of credit (HELOC), many borrowers have turned to friends and family members for help. If you’ve been asked to co-sign a HELOC loan, think twice before putting a pen to the dotted line. As a co-signer you may be required to pay back [...] [...more]
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Low home equity lending rates have prompted many borrowers to pay off higher-interest debt with a HELOC loan. BankingMyWay reports: “Those carrying considerable debt may have difficulty using balance transfers to consolidate it all. New credit cards may not have a high enough limit. In these cases, a home equity loan may be a more practical option. [...] [...more]
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In the midst of this economic crisis, a growing number of HELOC borrowers are going to credit counseling agencies to get help with their debt. Unfortunately, some are surprised to find that their HELOC debit card is not the same as a credit card and their outstanding balance cannot be renegotiated or reduced in the [...] [...more]
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If you don’t pay your home equity line of credit, your HELOC lender could force foreclosure proceedings. But, many HELOC lenders are reluctant to start the process and would rather work out a solution with borrowers. The San Francisco Chronicle explains: “…Most second trust holders are reluctant to institute foreclosure proceedings. There is an expense involved (such [...] [...more]
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If you’re a HELOC borrower facing foreclosure, Obama’s new Homeowner Affordability and Sustainability Plan has something for you. The housing plan has a provision that allows “mortgage cram-downs,” a highly controversial practice that allows bankruptcy judges to alter the terms of a mortgage at their discretion. Basically, when the plan becomes law, you could file for [...] [...more]
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There was a record number of foreclosures last year, concentrated in several metro areas. The Real Estate Bloggers report: “There is no surprise that the foreclosure activity has been focused in the states where real estate speculation was rampant. 26 percent of the foreclosures in the United States in 2008 were just in California. The top 5 states [...more]
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Recent numbers show that HELOC delinquencies are at their highest level ever recorded. A US News and World Report blog shares this from the American Bankers Association: “In the latest sign that consumers are under financial stress, indirect auto loan and home equity lines of credit (HELOC) delinquencies reached their highest levels ever during the third quarter [...] [...more]
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Fannie Mae and Freddie Mac won’t be perusing foreclosures during the holidays. Even those facing HELOC foreclosure are off the hook – at least for a few weeks. MarketWatch reports: “Fannie and Freddie will not foreclose on occupied homes from Nov. 26 to Jan. 9. Fannie said it will reach out to 10,000 affected borrowers and Freddie [...] [...more]
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Homeowners in almost every state are feeling the effects of the home equity crisis. Those who took out large HELOC loans are now struggling with upside down mortgages and the possibility of foreclosure. But, borrowers in one state are less exposed. Thanks to more strident state laws, fewer Texans are facing these problems. The Houston Chronicle explains [...] [...more]
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The mortgage crisis has created an entire new industry: the foreclosure review company. These organizations review clients’ loan documents looking for mistakes. If a mistake is found (which apparently is pretty commonplace with high-risk California loans), the client can use it as leverage to stop the foreclosure proceedings. One such company, CancelYourForeclosure.com, explains their work: “Let us [...] [...more]
