Foreclosure and Home Equity Line
 

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.

Thanks.

"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.

I am serious? I did 100% financing but they appraised the home at a
much higher value than I paid and gave me a HELOC based on this
appraisal.
So, in theory, I do have equity in the home, but only if I were to sell
it at the appraisal value which I have been unable to do.
Does this make sense?
Thanks for your feedback.

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.

In article .com,
KP wrote:
I am serious? I did 100% financing but they appraised the home at a
much higher value than I paid and gave me a HELOC based on this
appraisal.
So, in theory, I do have equity in the home, but only if I were to sell
it at the appraisal value which I have been unable to do.
Does this make sense?

Yes. It means that its overpriced. The appraisal is probably too high,

--
Rich Greenberg Marietta, GA, USA richgr atsign panix.com + 1 770 321 6507
Eastern time. N6LRT I speak for myself & my dogs only. VM'er since CP-67
Canines:Val, Red & Shasta (RIP),Red, husky Owner:Chinook-L
Atlanta Siberian Husky Rescue. www.panix.com/~richgr/ Asst Owner:Sibernet-L

On 8 May 2005 08:37:12 -0700, someone wrote:


Technically, you can do what you suggested. It's not a crime, unless
you somehow deliberately defrauded the bank in the process...

Please don't do your own dental work either.

OF COURSE it is a crime, because he INTENDS to charge up the equity
line, walk away from the house, and leave the country. He would be
INTENTIONALLY incurring a debt that he has NO INTENSION of paying
back.

Could he get away with it? Sure. Should we encourage him? No.

This is one of the few times that I am inclined to say "damned
foreigners".


Reply to NG only - this e.mail address goes to a kill file.

On 8 May 2005 08:40:49 -0700, someone wrote:

So, in theory, I do have equity in the home, but only if I were to sell
it at the appraisal value which I have been unable to do.

Then you'll need to sell it for less.



Reply to NG only - this e.mail address goes to a kill file.

On 8 May 2005 08:48:29 -0700, someone wrote:

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.

Uhh - tautlogy here? No, you CAN'T get an "equity" line unless the
bank beleives that you have equity in your house. Which is
demonstrated to them by an appraisal. Which could be wrong.

"Equity" is just difference between what the value is, and what is
owed. It is NOT how much you paid off on your loan. So an appraisal
that is higher than the debt DOES indicate there is equity. Unless
you go and sell the house to find out what the value is, an appraisal
*IS* what is used to determine this.


Reply to NG only - this e.mail address goes to a kill file.

In article ,
says...
On 8 May 2005 08:48:29 -0700, someone wrote:

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.

Uhh - tautlogy here? No, you CAN'T get an "equity" line unless the
bank beleives that you have equity in your house. Which is
demonstrated to them by an appraisal. Which could be wrong.

Or even intentionally inflated by the lender so they can get away
with lending to customers who otherwise wouldn't qualify.

There are plenty of appraisers out there who know how to make an
appraisal meet loan requirements, irrespective of the fair market
value of a property, and plenty of lenders who know and value these
appraisers since it lets them make more loans.

--
is Joshua Putnam
http://www.phred.org/~josh/
Updated Bicycle Touring Books List:
http://www.phred.org/~josh/bike/tourbooks.html

"Joshua Putnam" wrote in message
...

Or even intentionally inflated by the lender so they can get away
with lending to customers who otherwise wouldn't qualify.

There are plenty of appraisers out there who know how to make an
appraisal meet loan requirements, irrespective of the fair market
value of a property, and plenty of lenders who know and value these
appraisers since it lets them make more loans.

I have noticed cases where the appraisal comes back almost exactly equal to
the value required for the loan. It might be coincidence, but it might not.

"KP" wrote in message
ps.com...
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.

this might be viewed as fraud?