Legal Question in Bankruptcy in Virginia

Discharged Home Equity Loan

Ch7 Bankruptcy in VA discharged in Oct 2007...

1- Can my home equity loan lender foreclose on my house even if I'm still paying regularly (ie monthly) or even possibly semi-regularly (ie every 6 weeks or so)?

2- If I don't pay my mthly bills ''on-time'' can the lender still charge me a late fee on this discharged loan?

3- Is there a process to forgoe the mthly payments? In other words, I'm planning on selling the house in 2-3 years and could repay the home equity loan in full then.


Asked on 3/26/08, 9:07 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Discharged Home Equity Loan

If you are current on the home equity loan, they can't foreclose. If you are late, late fees will be included in what you have to pay to remain/become current. (They can't "charge" you in the sense of suing for them, but they can foreclose if late fees are not paid). There is no "process" to forego the monthly payments. While it is not a foregone conclusion that the lender will foreclose (they may not, if the property is not worth enough to pay off the first mortgage and pay them anything on the HELOC), they will be very unlikely to agree to forbear for 2-3 years until you sell.

Read more
Answered on 3/26/08, 10:29 am


Related Questions & Answers

More Bankruptcy Law questions and answers in Virginia