<<<Boz, it's hard to lose your house simply by defaulting on a home equity loan or line of credit. The issuer of that loan is a second (or maybe third or fourth) lienholder on the property and can't make a move without the knowledge and consent of the first lienholder, who couldn't care less about the second lienholder's status, anyway.>>>
Tradelite,
You are incorrect and really shouldn't be writing this stuff unless you are sure about what you are saying. A home equity mortgage (2nd, 3rd, etc.) can be foreclosed on without consent from the first lienholder. Of course, the first lienholder gets the money first, but has no say whether the property is foreclosed on or not.
<<<It's hard to agree with your premise that credit card companies can only ruin your credit rating and have no recourse beyond that. >>>
Tell me then, what recourse does a credit card company have beyond ruining your credit rating?
<<<It's no fun to go through life with a court judgment on the books---it crops up to haunt the person every step of his life, including when applying for a job.>>>
It's also no fun to go through life with a foreclosure. My point, once again and again, is that a person risks their home by rolling credit card debts into a home equity loan. They do not risk their home if they do not roll the debt into a home equity loan. If they fail to pay their credit cards their credit is then deemed poor. If they fail to pay their home equity loan, their credit is then deemed poor AND they could lose their home. Trust me, that haunts a person too.
Also, if someone is paying 18-24% in credit card rates, the last thing, likely, that they should be doing is rolling their credit cards into a home equity loan.
Your opinions all seem to be based on anecdote and not much of anything else. You are extremely biased and, in this situation, dangerously wrong. |
