Foreclosure and Home Equity Line
Question: Hello all, Can anyone advise on this; I currently own a home and part of the mortage is a home equity line of credit. I have asubstantial amount in the equity line that I can use. The problem I have is that my employment will be terminated and I am not a US citizen. Since I have had prior knowledge of this, I have been trying to sell the house for quite awhile now with no luck. I am not as concerned about the impact on my creit rating as I am with having enough funds to move back to my own country. Is it legal for me to use the unused part of my equity line and go ahead and foreclose on the property? Any advice would be appreciated.
Answer: You’re not serious are you? Unless fraud is involved, an equity line of credit is issued based on a percentage of the equity you have in the home. With a substantial home equity line of credit, you should also have equity beyond the equity line of credit. This is especially true in rising markets we have now. If you draw out the line totally and let the bank foreclose, you will lose the additional equity.
Technically, you can do what you suggested. It’s not a crime, unless you somehow deliberately defrauded the bank in the process. If that was done, then it is a crime. What have you done to try to sell the home? In this kind of market, any home that is realistically priced and has a realtor working it should sell without too much trouble.
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