HOME EQUITY LINE OF CREDIT (HELOC) NEGOTIATIONS / SETTLEMENTS

If there is positive equity in a piece of residential real property the owner can obtain a line of credit from a lender / creditor using the real property as collateral.  A Home Equity Line of Credit (often referred to as the acronym “HELOC”) is a type of open-ended mortgage that is often (but not always) in a subordinate lien position to another (first position) mortgage.  It is common for a HELOC to have a “draw down” period whereby the property owner (borrower / debtor) can utilize the funds available in the HELOC and make monthly payments against it to bring the balance of the line back down.  It is similar to a credit card in the sense that you can use the funds over and over again based upon your outstanding balance and the total amount of the credit line that was approved / extended by the lender / creditor.  If the borrower / debtor does not pay off the outstanding balance each month then interest charges are applied and a minimum payment is owed.  If borrower / debtor falls behind on their payments and defaults on the debt the lender can choose to foreclose on the collateral.  The lender / creditor may also agree to settle the debt for a fraction of what is owed with shrewd negotiations.  If you are an owner of real property and you are past due on your HELOC payments please call Brian M. Rokaw, P.A. to schedule a no obligation consultation – (305) 722-5888.