I hope someone can help me answer this. with interest rates what they are now i am finding it hard to make the monthyl payments on my LOC. What happens if i default on it, can they take my home or will a lien be put on my property until the debt is paid off.

Does anyone know any help is appreciated!


Sampsta

Before you default on any loan, call the lenders and explain the position you're in to them. They'll probably work something out with you so that you're not in default and they don't have to foreclose on your property. I don't know what state you're in but here in CA, lenders forclose on the property. There is no point putting another lien on the property. Also, make sure you get any agreement you have with them in writing and negotiate how and what they are going to report to the credit reporting agency. Good luck!

You will face foreclosure on the property. You can contact your lender in writing explaining your preferred course of action to pay off the debt you owe them.
If you decide to sell your property but you cannot sell it due to the real loan to market value you may have to visit with a loan loss mitigation specialist to help bring the property current while you move out.