2 mortgage loans – primary loan is 80,000 still owing at 4.55 % 15 yr loan with mortgage company. 2nd loan is heloc with different bank – owing 97,000 , rate of 3.5 %
can the 2nd heloc bank call the loan, they have already put a hold on use of this account? We are now having debt problems and are considering chapter 7 bankruptcy since we are looking for work and living off savings. What happens if declare bankruptcy with the heloc since it is secured with our home, and we owe more on it than our primary mortgage – will it force us into foreclosure. So far we are current on our mortgage but are not paying our unsecured credit cards
This is a perfect situation to discuss with a bankruptcy attorney. Many people are so upside down in their homes that a bankruptcy can strip a second mortgage and maybe in your case the HELOC. With a little planning with the bankruptcy attorney you will probably be able to keep the house if you can afford it.
You can click here to find a local bankruptcy attorney and schedule a free appointment to go discuss this with the attorney.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.