If you do not pay or default on your HELOC and continue to pay on first mortgage can the HELOC mortgage lender initiate foreclosure?

Does the HELOC holder contact your primary mortgage holder at loan origination? Do they contact the for permission to inititate foreclosure? Can the primary mortgage holder stop foreclosure?

Well, they can initiate foreclosure all by themselves without the primary mortgage holder. They generally won’t as in a foreclosure the gets paid off first and the secondary lien gets paid if there is anything left over- but they can and will if you stop paying.

Maybe you should just try and refinance your home into a better program that will allow you to keep it and maintain the payments.

Yes the holder of a 2nd Mortgage(HELOC) can initiate foreclosure if you fail to meet your obligation. They first contact the title holder who is usually the escrow company and begin officially serving you with notice.

The Original lender can not stop the process however they are the first payed after the sale of the home with what ever remaining being paid to the HELOC and finally to you if any is left.

Yes, but depending on the property value, your equity and a few other things, many first position lien-holders will pay off your second and add the amount to your first mortgage. That will in effect “stop” the foreclosure action, but may leave you with a payment that is higher than both of your old payments were.

If your lender will offer a forbearance modification if you can demonstate that you can pull out of this situation. Your HELOC holder can foreclose because your home is collateral for the loan. Does not matter if your 1st is paid up or not. A HELOC is a Home Equity Line Of Credit supported by your home for repayment. they do not have to contact the primary at all either.

It must always be kept in mind that the underlying collateral of a home equity line of credit (HELOC) is the home. This means that failure to repay the loan or meet loan requirements may result in foreclosure


Tags: , , , , , ,