What Happens With Home Equity Loans And Lines Of Credit After Your House Is Foreclosed On?

Home equity loans or lines of credit, are basically second mortgages that give you a line of credit based upon equity you carry in your home. After foreclosure, the equity in your property disappears as does your ability to make new purchases using your line of credit. Furthermore, you're still responsible to repay any amount you previously charged using your equity loan or line of credit.  

 
Now,…

What types of funding do entrepreneurs and small business use to finance their ventures?

Financing falls into two categories: debt and equity. In addition, when a small business obtains a government procurement contract, it can play a similar role as traditional financing, providing the spark and fuel that are needed for the firm to grow.  
 
Advantages to equity financing:
It's less risky than a loan because you don't have to pay…

What is the difference between a home equity loan and a home equity line of credit?

It can be confusing, since both the home equity loan and the home equity line of credit use your home as collateral. Plus, both are sometimes referred to as a second mortgage, because they are secured by your property, just like your original (first) mortgage.
 
A home equity loan, sometimes called a term loan, supplies you with a fixed amount of money, payable over a fixed…

How does a home equity line of credit work?

A home equity line of credit is a form of revolving credit in which your home serves as collateral. Because the home is likely to be a consumer's largest asset, many homeowners use their line of credit only for major items such as education, home improvements, or medical bills and not for day-to-day expenses.
 
With a home equity line, you will be approved for a specific…