I'm looking at a property going to a HOA foreclosure sale with a senior mortgage lien and senior HELOC lien. I know the mortgage has a 30 year term and was taken out in 2005. Using this info I can calculate a rough estimate of the current mortgage balance. The HELOC lien is my main concern. Is there any way for me to find how much is owed on the HELOC?
I'm gathering that you're assuming the total balances of both mortgage and HELOC is less than the property is currently worth? If not, be careful since in most cases, no liens are wiped out from a HOA foreclosure, unless the HOA lien was placed before the HELOC lien, and the HOA names that 2nd/junior lien holder in the foreclosure action.
As per the balance on the HELOC, you could try contacting the attorney acting on the foreclosure file to see if they can give you the balance.
Thanks Chad. Yes, already contacted the attorney on the foreclosure file and he wasn't able to see anything. I'm wondering if there's some other way to find the HELOC balance? I think that if the HELOC lender hasn't started the foreclosure process then the amount owed on that loan isn't very high. If there was a large outstanding amount, then the HELOC lender would start foreclose.. but I don't really know
Call me stupid but, what is a " HELOC or HOA,"...? I assume the letters stand for something.
Thought so, well I was always told that the really stupid question was the one never asked
@Wayne Brooks I know the maximum amount of credit. What I'm looking for is how much was borrowed and what is currently owed.
When someone is in financial trouble, with a line of credit, I assume it is maxed out. There is no way to know the actual amount, unless you talk to the owner, and he tells you the truth.
Novel concept...ask the owner (Borrower?) what the balance is. If you are not in contact with them, good luck. You aren't going to find out using honest means without approval via 3rd party authorization to get a demand to the junior lienholder....in other words, what Wayne said.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!