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#1
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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. |
#2
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"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. |
#3
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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. |
#4
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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. |
#5
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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 |
#6
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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. |
#7
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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. |
#8
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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. |
#10
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"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. |
#11
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"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? |
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