My husband and I filed bankruptcy last year...were discharged on the 15th of November 2010. We live in PA right now but plan to move back home (which is FLorida) in about a year and I am wondering what would happen if we quit paying our home equity loan now? We reaffirmed NOTHING!!! Will they just attach a lien to our mortgage? Or can they force a foreclosure on the house to get their money? We don't care if they put a lien on the mortgage we are eventually just going to walk away from the house. Thanks!
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The lien is already attached. If you are "underwater" -- meaning that you owe more than it's worth -- then the likelihood of a HELOC actually foreclosing is very low. As always, it is their decision as to whether to foreclose or not. That decision is usually tempered by "how much" then can actually get by foreclosing.Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
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Any advice provided is not legal advice, but simply the musings of a fellow bankrupt. -
They already have a lien. Their only option since the HELOC was included in the bankruptcy would be to initiate foreclosure. Chances are, they will only do that if there is something (aka: money) in it for them & that will depend on the property value and their position in line. Another issue worth considering is how long a foreclosure would take were they to initiate one.
edit: Nothing like a piggyback ride. It's the only benefit of being a slow typist.
Last edited by debee; 02-24-2011, 05:00 PM.There are two secrets for success in life:
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If the house sold right now they would probably get exactly what or a little less than what is owed on it. How long does foreclosure usually take? We just can't afford to keep making both payments and I don't know what to do!!Comment
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PA is not one of the overburdened foreclosure states - foreclosures take place more quickly in certain areas than others and depending upon your situation and where you live, I would not bank on a drawn out foreclosure cause there is no guarantee. Did you discuss the possibility of this situation with your attorney prior to discharge? If not, since you were recently discharged, you should give the attorney who handled your Chapter 7 a call and discuss your concerns.Originally posted by jelo6875 View Post_________________________________________
Filed 5 Year Chapter 13: April 2002
Early Buy-Out: April 2006
Discharge: August 2006
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