Legal Question in Credit and Debt Law in New York

I have fallen behind on my home equity...my mortgage is current. I applied for a modification on my home equity and I was approved then denied. I have been informed if I do not make the 5 late payments in full the monies will be returned to me. What can I do? What is going to happen? I can not make this large payment.

Thank you,

Dawn


Asked on 3/27/13, 9:57 am

1 Answer from Attorneys
Rory Alarcon Rory Alarcon, Esq.

Your HELOC lender may proceed to foreclosure, but may hesitate to do so based on market conditions and the present amount of equity you have on the house.

If you do not make payments on the HELOC or are not permitted to do so, then I advise you to take whatever money you could apply to the loan (if it was being accepted) and keep them in a bank account. Your lender may settle on easier terms if you can give a lump sum payment in the future.

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Answered on 3/31/13, 3:23 pm


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