Can the bank reposses your house if you paid off the primary mortage, but not the equity line of credit?

Question

Can the bank reposses your house if you paid off the primary mortage, but not the equity line of credit?

Answer 1

The equity in your house is what is securing the line of credit you have.  Your house is the bank's collateral for extending the credit to you.  If you don't pay what you owe, they take the collateral.  That is the point of collateral - to ensure payment.

Answer 2

yea

Answer 3

I dont think so. Unless you use your house as a colleteral and you are behind in your payments on your line of credit.

Answer 4

Yes, the reason it is called a home equity line of credit because the loan is secured by the equity you have built up in your home.  Failure to pay will result in a judgment against you and the house can be repossessed and sold at auction.

Answer 5

If it's a HELOC (home equity line of credit), yes they can take your home. Did you sign a second mortgage for this line of credit? At the courthouse where this mortgage is recorded for public record, your legal description of your property (land and any improvements) is part of that document. Your line of credit "attaches" to your land as a voluntary lien. They can foreclose on this if you default.

Answer 6

Yes.

The house is the collateral you put up for the equity line. If you don't pay it - they can and will foreclose.

Answer 7

Yes because both the initial mortgage and the equity line are secured by a lien on the property.  If you pay the mortgage and not the equity line, and the two obligations are with different banks, only the bank that holds the unpaid loan can take your house.

Answer 8

Of course the house is your collateral