6 Reasons why you should settle your Second loan or Home Equity Line of Credit (HELOC) NOW!
The second loan or the Home Equity lines of Credit are usually issued based on the value of the house and secured by the equity on the house. In other words, the financial institutions are safe when lending this money during a possible foreclosure as long as there is equity on the house. However with the downturn in the economy and the crash of the house market, such loans are no longer secure. While most financiers cannot recover the deficiency on the first loans, they can still get their money on a second or home equity line of credit loan even after the foreclosure. Once the property is foreclosed (unless short sale in California), the amount owed becomes an unsecured debt just like a credit card debt. This means the banks can still collect their money.
This short article gives you at least 6 reasons why you should not be ignoring such debts and settle them as soon as possible. Note that it covers only California issues.
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Shah Peerally is an attorney licensed in California practicing immigration law and debt settlement. He has featured as an expert legal analyst for many TV networks such as NDTV, Times Now and Sitarree TV. Articles about Shah Peerally and his work have appeared on newspapers such as San Jose Mercury News, Oakland Tribune, US Fiji Times, Mauritius Le Quotidien, Movers & Shakers and other prominent international newspapers. His work has been commended by Congress women Nancy Pelosi and Barbara Lee. He has a weekly radio show on KLOK 1170AM and frequently participates in legal clinics in churches, temples and mosques. To learn more about Shah Peerally, visit his personal blog on www.ShahPeerally.com.
Information provided above is for educational purposes only. One should not act or refrain to act solely based on the information provided. You should consult an attorney to assess your case before proceeding.
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