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Does anyone have any information on being sued for not being able to pay a home equity loan when you don’t own
Posted on April 23rd, 2010 3 comments
drowning in debt asked:
I had to sell my home on short sale after it being on the market for a year and a half and I simply couldn’t afford it any longer. I had the original mortgage and two home equity loans. The first mortgage was paid off and the two home equity loans removed the lien but still wanted me to pay all the money I owed them. I now rent and am unable to keep up all the payments. The home equity loans are now threatening to sue me. They want a big lump sum and there is no way I can come up with it and they say it is too late to make regular payments. What can I do? What can I expect if they take me to court? How reliable are debt relief company’s. I would really appreciate any advice anyone can give.
SamPersonal Finance Advice, Debt Relief, First Mortgage, Home Equity Loan, Home Equity Loans, Lump Sum, Money, Mortgage Loans, Original Mortgage, Pay Equity3 responses to “Does anyone have any information on being sued for not being able to pay a home equity loan when you don’t own”
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There are different types of short-sales. The one that you seemed to agree to, is that you are being held for the difference of the short. Some companies will forgive this difference.
Now that you are in this situation. You will need to try and work with these equity lenders. Try to arrange a reasonable repayment plan. If they are unwilling to work with you on this, then your other alternative is to obtain legal counsel and possibly enter into a Chapter 13.
If you try to ignore it, these lenders could seek a judgement that is placed on your credit report. And could pursue this even further to garnish your wages.
Debt consolidation companies are considered filing for a chapter 13 anyways. The major difference is that filing for a chapter 13 stops communication immediately, and you won’t be faced with a prolonged non-payment issue. What I mean by that is when you are working with a debt consolidation company, they will not necessarily start making payments to your creditors until the negotiation process is complete. What this leaves you with is X amount of creditors not being paid for X amount of months.
Good luck, and let me know if you have any addtional questions. I try to help.
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I would see if you qualify to file bankrupcy.
It is harder to file for bankrupcy these days, but if you can show that you cannot afford the debt payments campared to your income, you can get out of paying them.
Otherwise, they will end up garnishing your wages.
If that is the case, they will take a payment out of your check every time you get paid. They can only take a certain percentage of your paycheck.
Believe me, I have been there, I know what your going through.
Good luck. -
If you are a first time borrower of a home equity loan it is imperative that you have a checklist of essential questions that you need to ask each and every lender. The answers to these questions will provide a valuable reference to base your comparisons on. What’s the interest rate? Knowing this is crucial. The interest rate will determinepercentage by which the adjustable rate will change. What is the Annual Percentage Rate or APR? The APR on the home equity loan will determine the yearly payment you will need to make towards this.The higher the payment in terms of points, the lower is the interest rate.
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jpocia03 April 26th, 2010 at 12:47