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Can you lose your house for non-payment of a credit card? |
Losing a House for Non-Payment of a Credit Card
It is very unlikely they will or even can take your home. This is very true if you have a morgage on the home, first they would have to pay off the lender on your home then foreclose, under most conditions they can't forclose as long as you pay the lender on your home. Find out what your state laws are. If you live in a "Tenancy by the Entirety" state, you lucked out they can't touch anything that is in both names.
Here are more answers and opinions from other FAQ Farmers:
- They can get a judgment and place a lien on the house, which means if you ever sell it, then they will have to be paid. Check your state laws for how long such a judgment-lien will remain on the house. In my state, it's 10 years, and then they either have to renew their judgment or lose it. But remember that each time you make a payment on your mortgage, you're increasing your equity and thus creating a better chance that there will be enough equity (after your Homestead Exemption, whatever that exemption is in your state) for the creditor to get his money--or at least more of it. So if you sell your house before the lien falls off, much of the principal you've paid on your mortgage may go to the creditor who holds a lien on the house. Thanks to a Congress that cares more about getting campaign donations from big credit-card companies than about protecting people who've hit financial troubles, the creditors hold all the cards.
- My mother is 83. Her social security and a small anuity pay all of her expenses. Her life savings is down to $11,00.00, which she is using to pay the minimum on her credit card bills. She owes $26,000 on her cards and her minimum payments are about $500.00/month. She will run out of money in about 6 months. What happens if she stops paying her cards or begins sending $50.00 a month?
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First answer by Lori. Last edit by 1635Pilgrim. Contributor trust: 74 [recommend contributor]. Question popularity: 278 [recommend question]
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