QUESTION
Do I have to pay back an equity line of credit on a home that has been foreclosed on and was collateral on the loan?
Asked on Jan 20th, 2012 on Foreclosures - Florida
More details to this question:
I am being sued by my old bank for 19,000 dollars for an equity line of credit I took out in 2008 on a home that has since been foreclosed upon and taken back by said bank. If the home was collateral on the loan do I have to pay the money back? If so is there anything else I can do?
1 ANSWER
Banking Attorney serving Miami, FL
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The Barrister Firm, P.A.
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Yes, the property doesn't always satisfy the promissory note (i.e. there's not enough equity) and the bank can sue on the note for the balance owed. You may need to seek bankruptcy or a payment plan with the lender.
Answered on Feb 20th, 2012 at 11:25 AM