Reduced Balance on Unpaid Home Equity Loan

A home equity line of credit (HELOC) is a revolving line of credit secured by your home’s equity. Unlike a traditional loan with a fixed amount, a HELOC allows you to borrow up to a pre-approved limit as needed. 

While ideal for ongoing expenses like home renovations or debt consolidation, failure to make payments on a HELOC can lead to serious financial consequences. 

In this case, we had a client with a 20-year-old HELOC loan that went unpaid. We successfully negotiated a settlement for our client, resulting in a $40,000 reduction on the remaining balance.