5 ms·
Mortgages are typically issued as non-recourse loans. This may not be true for HELOCs or other risky equity loans, but usually your lender can’t seize your home
by aobdev 4y ago
Mortgages are typically issued as non-recourse loans. This may not be true for HELOCs or other risky equity loans, but usually your lender can’t seize your home unless you haven’t been paying monthly.
- djbusby 4y agoForeclosure takes many months.
- _huayra_ 4y agoI'm pretty sure HELOCs can be called any, iirc, but I'm not sure if fail to pay the call means they put a lien on your house or force you into foreclosure. When people say "you should buy real estate as an investment because you can't live in your brokerage account" and then do crazy stuff with their equity that they wouldn't even dream of when investing (e.g. Boglehead investors who HELOC for some net negative remodel) it really blows my mind...
- cudgy 4y agoHELOCS cannot be called, but they can be frozen, preventing further borrowing, or have their borrowing limits reduced.