Are you in for a payment shock? Are you prepared for your monthly HELOC loan payment to increase, possibly double or triple? Be proactive, work with us early. Let us help you create solutions to allow you to have the disposable income you need to pay for your necessities and the inevitable increase in your HELOC payment.
In 2003 – 2004 many of us used the equity in our homes to open lines of credit with our lending institutions called HELOCs. HELOCS, or home-equity lines of credit, allow borrowers to withdraw equity from their homes to spend on renovations, consolidate debt or pay for other expenses such as everyday necessities. These HELOCS often stipulate a 10-year draw period during which time the borrower is allowed to make interest only payments. After this period of time, the payment jumps to include principal plus interest. Many borrowers are unprepared financially to cover the increase in the payment.
Borrowers that were once able to make $300.00 to $400.00 a month payments are now struggling to pay $600.00 – $800.00 upwards of $1000.00 per month. What was once disposable income in now being used to pay the increased loan amount, and worse yet, many borrowers are falling behind.
Bankruptcy Attorney Heath Berger, with Offices in Suffolk and Nassau County can help you create solutions to your debt issue. Don’t wait, plan ahead.