Equity In Home Affect Settlements?
Date: Wed, 02/04/2009 - 11:02
I read something in another thread that stated some creditors will use a search engine to look up the Fair Market Value of your home and assess if you have any equity in your house as a part of their assessment during settlements.
Anyone have experience with that?
I probably do have some equity in my home, but can't access it short of selling the house. The HELOC market is dead, not many lenders are doing these. A cash-out loan is difficult to get in this environment, and with my plunging credit score, awfully difficult in this case. Plus, I live in a new development which is only about 1/4 of the way built, and the builder is still putting out new homes on my street (slowly but there are empty homes for sale on my street). So any sale would compete with a brand new home, and they can beat me on price if they wish. So my point is, it may look like I have equity in my home, but I can't access it if I do (and I don't want to), and I can't sell it either at anything near a FMV.
Anyone dealing with that kind of situation. I guess I didn't think my credit card companies would be overly concerned about my house.
Anyone have experience with that?
I probably do have some equity in my home, but can't access it short of selling the house. The HELOC market is dead, not many lenders are doing these. A cash-out loan is difficult to get in this environment, and with my plunging credit score, awfully difficult in this case. Plus, I live in a new development which is only about 1/4 of the way built, and the builder is still putting out new homes on my street (slowly but there are empty homes for sale on my street). So any sale would compete with a brand new home, and they can beat me on price if they wish. So my point is, it may look like I have equity in my home, but I can't access it if I do (and I don't want to), and I can't sell it either at anything near a FMV.
Anyone dealing with that kind of situation. I guess I didn't think my credit card companies would be overly concerned about my house.
Having all the equity in the world won't matter to a creditor wh
Having all the equity in the world won't matter to a creditor when it comes to settlements. They would or should know that because you're delinquent (which affects your credit score) the chances of you refinancing your home or pulling a HELOC is slim to none. I wouldn't be too concerned.
