House and Secured Line of Credit On Mortgage
November 19th, 2008 by Questions
About 18 months ago I added a $175k Home Trust Visa that was secured and registered on title to my mortgage. My first mortgage and this mortgage are fully current – my issue is that I am facing bankruptcy and I have $275k on my first mortgage and $175k on title as security. If I sold today – my house would net $450. I can make payments to both lenders – will they make me sell the house b/c the $175k is a security on the mortgage?
I guess my question is this- Is the equity on my house counted onl as the difference from mortgage balance of $275 and current sale value of $450 or does teh $175K Home Trust Visa/Line of Credit (that was all legally added on title) stay and so I can possibly keep the house if I have no equity?
I know it seems a little silly that 18 months ago I had equity (of about $150k) which is why I was provided teh secured line of credit but our houses have been decimated of late in value. If I am current – even after bankruptcy, woudl the line of credit call their money knowing that the hosue could be worth less than their share?
Posted from: Ontario