Homeowners who purchased properties during the 2005-2008 real estate saga may not be out of the water just yet! As if the market hitting rock bottom shattering home values across the nation wasn’t enough for these troubled homeowners
, those who got into bed with HELOCs to pad their cash on hand at the time may be facing skyrocketing monthly bills coming just around the corner.During the housing cost peak, millions of Americans found themselves using their homes for other means – as a steady cash flow with the help of a HELOC. A HELOC is a form of second mortgage that is granted to the homeowners
to be used for whatever purposes they deem fit. It is the terms of these loans that make them so unique. For the first ten years of the thirty year mortgage, you are only required to pay interest – no principal – on the loan. After the first decade, you are then required to pay both principal and interest.For those with HELOCs that purchased homes before the pricing crash, this can mean terrifying payments in their near future, as those second mortgage loans mature past their first decade. With first and second mortgages on their homes, most victims of the infamous market crash are in a sticky position. Their homes are not worth the remaining balance of the first mortgage, let alone the second – making these homeowners severely underwater. As HELOCs mature out of the introductory payment period, many of these individuals will not be able to keep afloat as they face these torturous payment increases, leading to a new wave of foreclosures
in the upcoming years.Stephen K. Hachey, a Florida foreclosure attorney, can help your wade through this process and determine a positive solution. Contact him at 813-549-0096.The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.