Can a bank foreclose on a home equity loan after ch.7 bankruptcy, or just lien my property?
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As partial of my re-grouping process, we need to know if a bank would take a skill if we can’t compensate for a time, or if they could usually garnishment it. There have been no alternative loans upon a property, as well as it is a let which is at a moment empty. Also, would a lein go on to grow with interest, etc.?
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If you have a home equity loan on your property, the bank already had a lien on it and after 3 consecutive missed payments, can file an NOD and begin foreclosure proceedings.
In a Chapter 7 bankruptcy, if a debtor wishes to keep certain secured property (such as an automobile or a home), he or she may decide to “reaffirm” the debt. A reaffirmation is an agreement between the debtor and the creditor that the debtor will remain liable and will pay all or a portion of the money owed, even though the debt would otherwise be discharged in the bankruptcy. In return, the creditor promises that it will not repossess or take back the automobile or other property so long as the debtor continues to pay the debt. Secured creditors may retain some rights to seize property securing an underlying debt even after a discharge is granted.
If the debtor decides to reaffirm a debt, he or she must do so before the discharge is entered. The debtor must sign a written reaffirmation agreement and file it with the court.
Be aware that you can be what is termed a "rolling 30 or rolling 60", meaning you can be consistently 30 or 60 days late and this will avoid the start of foreclosure proceedings. If you miss that third payment though, the lender will not accept less than 3 payments to bring the account current, and they will initiate foreclosure proceedings. So don’t let yourself miss that 3rd payment!
Hope this helps!
didn’t you include teh HOE loan or your primary mortgage in your Bankruptcy filing?
doesn’t matter what you did – if you don;t pay, you lose it
They can if you don’t pay the loan. Chapter 7 allows you to liquidate all of your assets minus your house, your car, and a few other essentials.
What this means, lets say you owned your house free and clear, then if you filed chapter 7, no creditor could touch your house.
Lets say you own a Yacht free and clear. After filing chapter 7, you could be forced to sell this to pay off your creditors even though you own this asset free and clear.
Here’s the issue with chapter 7, if a protected asset does in fact have a loan against then yes that lender and that lender and you do not make the required asset they can still repossess it and in the case of a house foreclose.
This may not be what you wanted to hear, but I hope this answers your question.
They already HAVE a lien on the property. They would take the property.
Also, if you are filing bankruptcy, this would be considered an asset and probably not excempt. You might be required to liquidate the property to pay off debts. You don’t get to keep everything while your creditors go unpaid.
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