Were you unaware that you can obtain a home equity line of credit
without having any actual equity in the home? In my state you can get
this based solely on an appraisal.


wrote:
"Hello all,
Can anyone advise on this; I currently own a home and part of the
mortage is a home equity line of credit. I have asubstantial amount
in
the equity line that I can use.
The problem I have is that my employment will be terminated and I am
not a US citizen. Since I have had prior knowledge of this, I have
been

trying to sell the house for quite awhile now with no luck. I am not
as

concerned about the impact on my creit rating as I am with having
enough funds to move back to my own country.
Is it legal for me to use the unused part of my equity line and go
ahead and foreclose on the property?
Any advice would be appreciated. "


You're not serious are you? Unless fraud is involved, an equity line
of credit is issued based on a percentage of the equity you have in
the
home. With a substantial home equity line of credit, you should also
have equity beyond the equity line of credit. This is especially
true
in rising markets we have now. If you draw out the line totally and
let the bank foreclose, you will lose the additional equity.

Technically, you can do what you suggested. It's not a crime, unless
you somehow deliberately defrauded the bank in the process. If that
was done, then it is a crime. What have you done to try to sell the
home? In this kind of market, any home that is realistically priced
and has a realtor working it should sell without too much trouble.