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Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 111535
Experience:  Attorney experienced in commercial litigation.
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1. Spouse and I live in SF Home basically on SS and temp job

Customer Question

Hello,
1. Spouse and I live in SF Home basically on SS and temp job
2. Home value $345K
3. First bal $223K current
4. HELOC bal $184K
5. QUESTIONS:
A. If we now buy a small home about $180K and let FC take place on current home can HELOC lender obtain a Deficience Judgement and place a lien on new home. We have virtually zero assets.Spouse is 67 I am 84.
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
If foreclosure takes place in NC, then I am afraid that they may sue you for a deficiency judgment on the primary mortgage. The second mortgage or HELOC, that would be a separate breach of contract suit and they could seek to place a lien on the new property.
However, if you get the new home you can place it in the name of your child or place it in the name of an irrevocable trust and then the lender from the HELOC could not place any lien on that new house.

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