If my home equity line of credit is not paid off and I am in default, can the bank repossess my car?

Question

I will have foreclosure and my mortgage bank will take over my condo, what will happen to my HELOC?

Answer 1

A HELOC is basically a second mortgage.  The house is the collateral.  The HELOC lender will have the second claim after the primary mortgage holder.  If the primary mortgage is paid off, then the HELOC lender is the first in line.

Answer 2

No, but if you default on your car loan, then yes.

Answer 3

no, the bank can't repo your car, unless they have title to the car or are the lienholder. They can sue you and get a judgement against you.  

Answer 4

They will reposess the condo but I don't believe your car will be part of the package. If you end up declaring bankruptcy that will be one of the first things to go (anything of substantial value)

Answer 5

The bank can only place liens against any real property you have, and "real" property means land, a house, a condo, etc.  So no, a car doesn't count.  If you still end up owing money on your mortgage after they repo your condo, the best they can do is try to garnish your wages, but that's a long, drawn-out process and in some states it's illegal.