Can credit card companies take my house?!

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big credit problems girl
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Can credit card companies take my house?!

Postby big credit problems girl » Tue Jan 25, 2011 1:30 am

HELP! Is it true that credit card companies can take my house away if I stop paying the bills? I am in huge credit card debt and worried about losing my home. If I stop paying on the credit cards I will be able to manage my house payment perfectly fine but I can't keep paying on both. I am perfectly alright with ruining my credit if I can keep my house but if the credit card companies can take my house then I don't know what I will do.

Please help and don't bash my past mistakes. I know I got in over my head with credit cards and have learned that lesson. I do not need a reminder what I need is advice for keeping my house! THANK YOU!


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Mogul of Pineapples
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Postby Mogul of Pineapples » Wed Jan 26, 2011 1:35 am

I'm no lawyer but I don't think you have to worry about credit card companies taking your house away.

A creditor can take you to court if you owe debt. If the creditor wins it may be possible to get a lien placed on the debtor's home, depending on the state. In theory a creditor might - and the is a big might - be able to force a foreclosure to try and collect on the debt. It makes sense for a mortgage company to do this to collect money but it would be foolish for a credit card company to try and collect a debt this way. When a foreclosure happens the first in line to get the proceeds is the mortgage company, then the 2nd mortgage/HELOC company if you have those, and last on the list would be lien-holders- the credit card company. There's usually no money for those last in line. I have never heard of a foreclosure happening to pay back credit card debt.
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Elliot Castro
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Postby Elliot Castro » Wed Jan 26, 2011 12:00 pm

I'm no lawyer but I don't think you have to worry about credit card companies taking your house away.


If that were the case, we would all be idiots not to buy a house on credit and then refuse to pay our creditors. It does hurt creditors when they re-sell assets like vehicles and houses, because THEY usually get only a small value of what the asset is really worth. So it is true that creditors do lose in these situations and try to avoid it at almost all costs, however they'd rather get back a few peanuts, than get back nothing.

big credit problems girl
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Postby big credit problems girl » Sun Jan 30, 2011 1:25 am

Guys I appreciate answering but I am confused because you each gave a different answer or that is how I read it?

cashnocredit
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Postby cashnocredit » Sun Jan 30, 2011 7:12 pm

It depends on how much equity you have in your house. If it's a lot they could go after it but they would first have to sue, then force foreclosure. They will not do the latter unless you have a lot of equity. However, a judgement is good for a long time and they might well wait for you to build up enough equity. In the meantime they can garnish, attach bank accounts, etc. There are limits and they depend on what state you live in. There is no hard answer to this without a lot of specifics but foreclosures from CC debt are rare.

MofP's answer is a good one.

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alsteig
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Postby alsteig » Mon Jan 31, 2011 1:01 am

The answer is no. "Cashnocredit is 100% INCORRECT."It doesn't matter how much equity or lack of it you have. Your credit card is an unsecured debt, unlike a mortgage which is secured against your property. Your credit card is only secured against your now tarnished name. They can of course file suit against you and get a judgment against you. Similar to any other creditor you have bilked. The judgment may include garnishment of wages if they can find your accounts. a lien on the property is also possible but they cannot foreclose. Chapter 7 sounds like your best option depending on your unsecured debt. PM me with any questions.

cashnocredit
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Postby cashnocredit » Mon Jan 31, 2011 2:36 am

alsteig wrote:The answer is no. "Cashnocredit is 100% INCORRECT."It doesn't matter how much equity or lack of it you have. Your credit card is an unsecured debt, unlike a mortgage which is secured against your property. Your credit card is only secured against your now tarnished name. They can of course file suit against you and get a judgment against you. Similar to any other creditor you have bilked. The judgment may include garnishment of wages if they can find your accounts. a lien on the property is also possible but they cannot foreclose. Chapter 7 sounds like your best option depending on your unsecured debt. PM me with any questions.


Of course they can force sale of your house once they have a judgement if you live in a state that allows it (unlike Florida). Generally, people do not own homes outright or have very high equity when also having major judgements against them. But it does happen. When it does you can lose your home.

If you owe 50k on your CC, they have a judgement, and you own a 1,000,000 home outright, you can bet they will sell your home if allowed in your state. That it's uncommon doesn't mean it doesn't occur.

Ya know, Saying I'm "100% wrong" is something you should do only whey you are absolutely positively certain you are correct. Are you? Are you absolutely certain? lol..

cashnocredit
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Postby cashnocredit » Mon Jan 31, 2011 11:20 am

alsteig wrote:The answer is no. "Cashnocredit is 100% INCORRECT."It doesn't matter how much equity or lack of it you have. Your credit card is an unsecured debt, unlike a mortgage which is secured against your property. Your credit card is only secured against your now tarnished name. They can of course file suit against you and get a judgment against you. Similar to any other creditor you have bilked. The judgment may include garnishment of wages if they can find your accounts. a lien on the property is also possible but they cannot foreclose. Chapter 7 sounds like your best option depending on your unsecured debt. PM me with any questions.


Nopers, they can also sell your house if you have enoough equity:
http://www.lawguru.com/legal-questions/california-general-civil-litigation/creditor-unsecured-credit-card-balance-394677728/a

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alsteig
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Postby alsteig » Mon Jan 31, 2011 5:52 pm

The little location denotation below the name "Vegas" for Las Vegas, Nevada. Exempted state. I am correct 100%

cashnocredit
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Postby cashnocredit » Mon Jan 31, 2011 8:04 pm

Yes, Nevada, unlike most states including the state we live in, allows only liens, not forced sales for unsecured debt.



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