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Need your help with heloc please

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New Contributor

Need your help with heloc please

I have a home that has no primary mortgage but has heloc for $59,000. The house has been vacant for a while as I have another home in another city as my primary. The heloc home is not livable now and needs too many repairs to be able to rent it. I don’t have the money to pay the heloc or do repairs. The insurance company is cancelling my policy. My question is do you just let the house go? Try to get a personal loan so this won’t ruin my credit? The second home I actually live in has equity in it to cover the heloc but I don’t know if this is a very smart thing to do money wise. Has any loan company just gave you a repayment plan through a loan of some sort with the same monthly payment you were paying on the heloc. I was paying $890 a month for the heloc . Now that the mortgage company is cancelling my insurance do you think the bank will foreclosure. Thanks for ANY help
Message 1 of 5
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Moderator Emeritus

Re: Need your help with heloc please

Unless you can get a loan at a lower APR than the HELOC I don't see any advantage to it honestly: if you can't make the payments you're sort of stuck.

 

I don't know the legal ramifications of a home that isn't deemed livable but can't it simply be sold at a discount and get out from under it?

 

 




        
Message 2 of 5
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New Contributor

Re: Need your help with heloc please

I was thinking if I can get a longer repayment then I could afford the monthly payments if they stay the $890 I’m already paying. The problem is the insurance company is cancelling my policy and I must have insurance on the place. I’m not sure if a personal loan would be better since I don’t need insurance on that. I have excellent credit and don’t really plan on buying anything anytime soon. I do love having good credit though in case I need it for a car or something if mine breaks down
Message 3 of 5
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Community Leader
Super Contributor

Re: Need your help with heloc please

I’m not sure how it works with a HELOC, but with a regular mortgage, if the insurance is cancelled, the mortgage company insures the property but at an astronomical policy rate. But, again, I don’t know if it works the same way for a HELOC. It’s worth calling your lender and asking.

GL2U.

DEC 2019: EX 816, TU 820, EQ 810
DEC 2018: EX 777, TU 783, EQ 799

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Message 4 of 5
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New Contributor

Re: Need your help with heloc please

Thank you. It’s a credit union so I’m going to ask. Hopefully they will work with me
Message 5 of 5
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