I have a home loan and a home equity loan. I have about $200,000 negative equity in my home and was just laid off a few weeks ago. I would like to try to save my house at all costs. What happens if I defualt on my home equity loan when I'm upside down.
by 
nickp001
ANSWERS: 2
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I would really like an answer to this too - and you are not alone. I believe you put up your home as collateral in the home equity loan. In a normal world you would possibly be defaulting and they could take your home, but there are so many other people just like you and they are bailing out everyone else - why not you. any financial people able to give a better answer - this is huge! Sorry about your job - I am right on the edge of losing mine and it is scary.
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You're gonna' have issues. I will tell you right now, the smartest thing you can do at this point is call your bank and tell them your situation and have them restructure your loan(s). You have to understand that the bank only takes peoples' houses as a last resort. They don't want your house. They're not in the real estate business. They want your money. All you have to do is show that you want to give them their money and you can keep the dogs at bay. Even if you stopped paying now, it would take about 6 months for it to get to the point of true foreclosure; but seriously, do yourself a favor and call your bank and talk to them. That is the most common mistake people make in foreclosures. I saw it all the time when I worked for a law firm that did foreclosure work for all the major banks. Call your bank and talk to someone about it; they will work with you; they want your money, not your house.
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