Will my home be foreclosed?

Asked by mleicheal, Sacramento, CA Tue Feb 5, 2013

I am up to date on my first mortgage but just received a letter stating I defaulted on my home equity line. The home is worth about 230k and I owe about 180k on the first mortgage and 150k on my home equity line. Will I go into foreclosure even though I am current on my first mortgage?

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Tim Moore’s answer
Tim Moore, Agent, Kitty Hawk, NC
Wed Feb 6, 2013
Yes, they could but looking at the number you gave if the 2nd forecloses the first is paid first and the others after, so the 2nd is not going to be paid in full. Next find out if you are in a recourse state where the lender that lost money can fill claims on you even after the foreclosure, I don't know if CA is but they are pretty liberal so you might not have to worry about that there.
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Scott Godzyk, Agent, Manchester, NH
Wed Feb 6, 2013
It certainly could, you should have an attorney review your situation if you are close to foreclsoure. You should be speaking with your second mortgage company to see what they can do to help you. You may need to check with a bankruptcy attornmey for immediate help in stopping a foreclsoure and giving you time to work it out.
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Shanna Rogers, Agent, Murrieta, CA
Wed Feb 6, 2013
Hi mleicheal,

You should consult a Real Estate Attorney. That said, I am not an Attorney but I believe (?) any person/company who has a lien on your property (whether first, second, third, fourth, etc) can foreclose on your property if you default - even if you are current on all other liens on the property.

Shanna Rogers
SR Realty
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Michael Cheng, Agent, San Jose, CA
Wed Feb 6, 2013
It's hard to tell whether you'll eventually go into foreclosure. That's the same challenge faced by the lenders when issuing credit to purchase a home. At this point, if you're current on the first mortgage, then there likely won't be any foreclosure proceedings. But, long-run, if you continue to default on the equity line and the line is from the same lender as your first mortgage, you may eventually be foreclosed upon.
Web Reference:  http://www.archershomes.com
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