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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55613
Experience:  29 years of experience as a tax, real estate, and business attorney.
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I have a home in Florida that is my primary residence. I paid

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I have a home in Florida that is my primary residence. I paid $195,000 for it about 5 years ago. I also have an equity line that I owe 60,000 on because we gutted the house and redid the whole house.
At this time I owe $176K on the primary and $59K on the equity. My house is currently worth about $150K. I had to file personal bankruptcy last year due to a business lawsuit. I did not sign any agreements to keep the house, although I did request to keep it and the mortgages.
I am currently in a mortgage workout with Bank of American, my equity line is with Greentree financing. I am requesting a modification with them to lower th einterest rate as it is at 11% right now. I was first told I didnt quality, then I was told I had to be accepted under a modification if my primary was doing it. Now I am being harrassed by the equity line people telling me they will not work it out with me and that they will foreclose on me. My question is, since they are not the primary, what can they do to me? I am aware that they can lien my property then foreclose on the lien, but what can they do about me living there and paying my primary. Please advise.
Submitted: 6 years ago.
Category: Tax
Expert:  Richard replied 6 years ago.

Good afternoon. Their threat to foreclose is meaningless...they are not going to do that because the property is worh less than the first mortgage and thus if the second lien forecloses they get nothing. But, if you are in default, they can sue you directly for the balance due. If they get a judgment, they can then go after your other assets.



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