JPaul

Housing Market Tracker - Killer HELOCs

HELOC borrowers in default of their loan terms, when the first is held by another lender, may be in for a rude awakening. If the first lien is sold to the HELOC lender the borrower cannot stall the foreclosure. The second loan now has the same lender as the first lien. Lenders are few and borrowers are many and banks tend to work together to help themselfs. I would not bet the farm that a second HELOC loan in default cannot be forclosed.