home equity company
what happens if you foreclose and you have a home equity loan on the property?
what could happen to you if you foreclose on a property and have a heloc on the property. it is in arizona, would i owe the money still to the home equity loan company,
Quick answer … NO
The HELOC is subordinate to your first mortgage, Arizona is a state where they can’t come after you for the difference. Basically, the lender that did your HELOC will get screwed. the lender in 1st position just wants there money and may recoup from a sale. (Depending on how large your HELOC was)
But whatever the shortfall they WILL 1099 you for the amount they are out, that means that they report it to the IRS as income and guess what … you owe taxes.
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