What happens if you foreclose and you have a home equity loan on the property in Colorado?
Friday, December 30th, 2011 at
7:02 pm
The equity loan was part of the orginal loan. Equity loan being the 20 of an 80/20 set up. Forclosed was part of a job transfer to Florida and was unable to sell the home.
Tagged with: equity loan • job • loan equity
Filed under: Fixed Home Equity Loan
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The equity line will also be written off and added to your credit report as an additional negative account.
The bank will try to get you pay the loan.
If they conclude you can’t, they will issue you a 1099-C. When that happens, see IRS publication 4681 for the impact to you.