anonymous asked:
One of my house is going to be entering foreclosure. I have another house in my name with an outstanding home equity loan. If i let my house go full into foreclosure will be loan rate be raised?
Nathaniel
One of my house is going to be entering foreclosure. I have another house in my name with an outstanding home equity loan. If i let my house go full into foreclosure will be loan rate be raised?
Nathaniel
Kelly
Dear Anonymous,
Your two properties are unrelated to one another. Your default on one property will not affect your contracted home equity loan to be modified or withdrawn.
If you have any remaining home equity cushion, i.e. ability to increase your amount borrowed against the second property, that cushion or maximum loan amount may be canceled reduced to the current existing loan level.
Banks everywhere are reducing maximum home equity loan amounts or cancelling rights to homeowner equity lines but can do so only to the extent they have not resulted in loans.