Home Equity Loans (2nd Mortgages) - Robert J. Adams & Associates

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Robert J. Adams & Associates

Home Equity Loans (2nd Mortgages)


October 7, 2016

Between 2005 and 2008, the banking industry offered Home Equity Lines of Credit (HELOC loans) to thousands of homeowners. If you have one coming due, you may have a major problem on your hands.

The HELOC loans generally only charge monthly interest payments for a certain period of years. When the loan expires, the homeowners owe the full balance. This is also called a balloon payment.

Because many of these loans were for a 10-year period, they are coming due now. Most homeowners are shocked when they get a bill for the full mortgage balance.

Starting in 2008 and 2009, the bottom dropped out for home values; often dropping below the balance owed on the first mortgage. While some home values have increased many have not. The problem with the drop in values is that these HELOCs can’t be refinanced with any reputable lender.

If you have a Home Equity loan that has or will shortly become due, what will you do?

One solution that has helped thousands is a Chapter 13.

One of 3 things can happen in a Chapter 13 depending on the value of the home:

  1. If the value of the home is less than the balance of the first mortgage, then the HELOC loan can be wiped out and the lien is removed from the property.
  2. If there is some equity after deducting the first mortgage balance, the loan can be bifurcated: part paid in full and part wiped out.
  3. If there is good equity the HELOC loan can be paid over as much as 5 years.

Robert J Adams & Associates has always been dedicated to helping homeowners get out of debt and keeping their homes. If you or anyone you know is facing a mortgage company demanding the immediate payment of thousands of dollars, call us. We are always here to help and save you money.

2017 Planning – Taxes and Home Equity Loans

The new year can bring problems, both known and unknown. You may have just found out you have an income tax problem. Or maybe you knew you had a property tax or home equity loan problem to deal with. You may find you don’t have the money to pay what is coming due. We have some instructions that might help you.

Do you owe Income Taxes for this year or past years?

Federal income tax returns are due by April 18, 2017. After that date certain old income taxes can be discharged. Income taxes due for the years 2013 and older can generally be discharged in bankruptcy. More recent taxes can be paid through a Chapter 13, and the interest and penalties stop. See: https://www.robertadamslaw.com/Discharging-Personal-Income-Taxes-Bankruptcy/ for a fuller explanation of the law.

Do you owe Real Estate Taxes? Have your Real Estate taxes been sold?

Unpaid real estate taxes can put your home in jeopardy of being lost to “tax buyers.” We can help you save your home and give you up to 5 years to pay the property taxes. See: https://www.robertadamslaw.com/Real-Estate-Tax-Sales-Illinois-Save-Home/ for a fuller explanation of the law.

Do you have a 2nd mortgage (or a Home Equity Loan)?

Our law firm has helped innumerable clients eliminate or reduce a 2nd mortgage. See: https://www.robertadamslaw.com/Eliminating-2nd-Mortgages-Also-Called-Stripping-Cramming/ for a fuller explanation of the law.

Serving Consumers and Homeowners since 1979

Robert J. Adams & Associates has been helping folks for more than 40 years get a “fresh start” on life and save their home, cars, and safe guard their wages. Always remember we are not the friend of your creditors: we are your friend.

Our greatest source of advertisement is current and past clients. If you know friends, relatives, or co-workers who have money problems please tell them about us. We will be glad to meet with them for free and treat them like one of our own clients.

Robert J Adams & Associates has helped thousands of good people, just like you, save their home. Take advantage of our Complimentary and confidential consultation today.

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About the Author

Robert J. Adams & Associates is a full-service law firm where attorneys with their extensive experience provide effective representation in Bankruptcy cases in Illinois.