You may soon see your monthly bills shoot up on your HELOC’s (Home Equity Lines of Credit). Millions of Americans used the boom in value of their home, to take out loans.
As we all know, housing prices have gone down considerably in the last 10 years.
HELOC’s are a type of 2nd mortgage on your homes. Banks will usually give you a line of credit on the equity in your home. The amount ranged but many were in the range of $50,000 to $100,000. You could use the money for whatever you wanted: new car, vacation, pay off other bills, etc. Typically you have to pay just interest and no principal on your balance for the first 10 years of the 30 year loan.
After 10 years, you begin having to pay interest and principal. That hike in the amount you owe could double your payments.
If you find yourself in this situation, I would be glad to meet with you for a free consult to go over your options. Before you are receiving a foreclosure notice or notified of a sheriff’s sale of your home, look at your options. This may be the best time to remove yourself from the no-win situation.