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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: bozwood who wrote (2500)4/30/2002 9:40:56 AM
From: TradeliteRead Replies (1) of 306849
 
Boz, around the time you posted something to the effect that I was "dangerously wrong" in my belief that people are better off with a home equity loan than a burdensome credit card debt, you said the following:

<<Tell me then, what recourse does a credit card company have beyond ruining your credit rating?>>

In my state, they can pursue payment of the debt, and if you have more than $5,000 equity in your home and try to declare bankruptcy, they can force the sale of the property. (Even homeowner's association liens can force the sale of homes in this state). Also.... If a person is forced to declare bankruptcy when personal debts get overwhelming, the court will impose a mandatory five-year repayment plan--if you can't pay and discharge the debt, your credit standing is pretty much ruined for life.

So losing one's home due to credit card debt is entirely possible, and I am not *dangerous* to people in pointing that out. If low-cost home equity loan payments are more manageable and cheaper than credit-card payments and enable people to get out of personal debt situations, that is the path people should investigate as an alternative. As I mentioned, the homestead protection does not exist in all states. And that is NOT anecdotal.
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