Do I want to Pay an additional Home loan When your Property is Foreclosed .

If you are going compliment of foreclosure and possess one another a primary home loan and you will a home collateral financing, youre probably questioning what takes place to your house security mortgage just after property foreclosure. Keep in mind that a home guarantee loan or the equivalent although not precisely synonymous household collateral personal line of credit, or HELOC, was 2nd mortgage loans. They are subject to property foreclosure lien priorities.

TL;DR (Too long; Failed to See)

What goes on to your residence guarantee financing inside the foreclosure depends on what other version of liens are on your house, like the first mortgage. A house equity loan is second so you can a first mortgage and may also prove to be additional to many other sorts of liens.

Household Guarantee Loan vs. HELOC

Since the one or two terminology are often used interchangeably, you can find extremely important differences when considering a home collateral mortgage and you can an excellent HELOC. Continue reading →