Can they foreclose if I only default on my home equity loan, not my first or second mortgage?
I’m being forced to relocate for my job, and I’m trying to avoid foreclosure or a short sale- I’d like to try to keep current on as much of my debt as possible. My home is currently worth less than half of what I owe (in florida). I do not qualify for refinancing because ratio of the value of the house to loan value. The notes are held by Freddie Mac. I am hoping that they will write a portion off, with the understanding that I’m still paying on a value far higher than I could sell for. (Mortgages worth $ 17K, HELOC of $ 45K, current home resale value ~$ 110K. I just want to be able to rent it and keep my head above water. Help.