Timeline For Foreclosure in All 50 States

The #1 thing that most real estate investors and homeowners facing foreclosure want to know is: “what is the timeline for foreclosure?” In other words: “how long does it take?” The answer is that the mortgage foreclosure process and timeline varies from state to state. This article provides the information and resources that you will need to find out the foreclosure laws, procedures and timelines for all 50 states.

As mentioned, each state will typically have a different set of rules and a different timeline for foreclosure.

20 states utilize only “Judicial” Foreclosures.
5 states and the District of Columbia utilize only “Non-Judicial” Foreclosures.
25 states utilize both Judicial and Non-Judicial Foreclosures.##
## Of the 25 states utilizing both types of foreclosure, Non-Judicial Foreclosures are more common. In fact, Non-

Judicial Foreclosure is the most commonly used form of foreclosure nationally.

I. JUDICIAL vs. NON-JUDICIAL FORECLOSURES:

The primary difference between the two classes of foreclosure is the involvement or non-involvement of the court system. As you might have guessed, Judicial Foreclosures are processed through the courts. Non-Judicial Foreclosures are not.

Regardless of the type used, the timeline for foreclosure is always preceded by a borrower defaulting on their mortgage payments. Most lenders typically won’t threaten homeowners with foreclosure until two or three payments have been missed. However, once the lender concludes that the mortgage is in default and the homeowner is not going to catch up on their overdue payments, a legal filing is made by the lender and the timeline for foreclosure begins.

A. JUDICIAL FORECLOSURES:

In a Judicial Foreclosure, the lender files a formal complaint with the court and records a legal notice of “Lis Pendens”. The complaint must state the details of the debt and why the lender should be allowed to foreclose on the property. The Lis Pendens gives public notice that the house is the subject of foreclosure proceedings and implements the legal timeline for foreclosure.

If the court rules that the debt is legitimate and in default, it will send a notice to the homeowner demanding payment of the amount owed (plus penalties and foreclosure costs). The borrower is typically given 30 days to respond and satisfy the debt. If they do not, the court will tender a judgement in favor of the lender, instructing that the home will be sold at a “Sheriff’s Sale” auction.

After the judgement is entered, in most states that utilize Judicial Foreclosures, the homewner has about 90 days prior to the Sheriff’s Sale to pay the entire amount owed and stop the mortgage foreclosure process. There are other alternatives that could stop the timeline for foreclosure during this 90 day period:

Negotiate a “Forbearance Agreement” with the lender that revises the loan terms to the satisfaction of both parties. (Most lenders do not want to foreclose because it can cost them a lot of money.)

• Sell the home.
• Refinance the loan.
• Declare bankruptcy.

If the mortgage foreclosure process isn’t stopped, the property goes to a “Sheriff’s Sale” where it is auctioned off to the highest bidder and extinguishes all rights of ownership of the defaulting homeowner. If noone purchases the property at the auction, the title to the home reverts to the lender and it becomes what is known as an “REO Property”. This stands for “Real Estate Owned” (by the bank or lender).

How long does the Judicial Foreclosure process take?

This is almost impossible to predict. The judicial timeline for foreclosure is entirely driven by the court schedule and literally “at the mercy of the court”. However, most experts will agree that Judicial Foreclosures can often take more than a year to complete.

Important Note: Even after a home has been sold at the Sheriff’s Sale, some states will allow an opportunity for the homeowner to regain ownership of their home. This is known as a “Redemption Period” and is a period of time after the mortgage foreclosure process has been completed. Even though the property now will have a new owner, the former homeowner can still reclaim title to their home by paying off the full amount of their original home mortgage plus penalties and foreclosure costs.

B. NON-JUDICIAL FORECLOSURES:

Also known as “Power of Sale” Foreclosures, Non-Judicial Foreclosures are conducted outside of the court system by either a third party “Trustee” or an attorney. This mortgage foreclosure process is used when a “power of sale clause” exists in a mortgage or deed of trust. This clause states that the borrower agrees to the sale of their property to pay off the balance of their home loan in the event of a default.

As with Judicial Foreclosures, most lenders will not begin the Non-Judicial Foreclosure process until several payments have been missed and they are convinced that the homeowner is not going to catch up on their overdue payments. However, once the lender determines the borrower to be in default, a legal filing is made by the lender and the timeline for foreclosure will begin. This filing is known as a “Notice of Default” (NOD).

After the NOD is filed, the homeowner typically has a 90 day “Reinstatement Period” to catch up on missed payments and stop the foreclosure before the lender can take further action. There are other alternatives that could stop the timeline for foreclosure during the Reinstatement Period:

Negotiate a “Forbearance Agreement” with the lender that revises the loan terms to the satisfaction of both parties. (Most lenders do not want to foreclose because it can cost them a lot of money.)

If the borrower remains in default at the end of the Reinstatement Period, a “Notice of Trustee’s Sale” will be filed with a date and time posted for an auction sale of the property. After the Notice of Trustee’s Sale is recorded, the homeowner typically has another 21 days before the auction date. During this period, the borrower can still stop the timeline for foreclosure with any one of the alternatives mentioned above in the Reinstatement Period.
If the mortgage foreclosure process isn’t stopped, the property goes to a “Trustee’s Sale” where it is auctioned off to the highest bidder and extinguishes all rights of ownership of the defaulting homeowner. If noone purchases the property at the auction, the title to the home reverts to the lender and it becomes what is known as an “REO Property”. This stands for “Real Estate Owned” (by the bank or lender).

Important Note: Similar to Judicial Foreclosures, after a home has been sold at the Trustee’s Sale, some states will allow an opportunity for the homeowner to regain ownership of their home. This is known as a “Redemption Period” and is a period of time after the mortgage foreclosure process has been completed. Even though the property now will have a new owner, the former homeowner can still reclaim title to their home by paying off the full amount of their original home mortgage plus penalties and foreclosure costs.

THE BOTTOM LINE:

Regardless of the mortgage foreclosure process used, it is very important to know the laws and procedures for your particular state. To help with that, here is a link to the Foreclosure Process: All States.

ABOUT THE AUTHOR:
The author, John Hanlin, recently published the HOT NEW E-BOOK: “The LazyMan’s Guide to Understanding Foreclosures & REO Property Investment”. Click here for info.

Mr. Hanlin is an Independent Investors’ Consultant who provides FREE investment advice on his website:
http://www.JohnHanlin.com where you can sign up for a copy of his FREE Special Report: “The Safest High Yield Investments You Can Make Today”.

Stop Foreclosure – Mortgage Help

Trying to find the right foreclosure mortgage help can be difficult, especially when the economy is in the shape that it’s in. Hundreds of thousands of people are seeking help in order to stop foreclosure on their homes. If you have taken out a mortgage loan in the past 10 years or so and over extended your credit you may be facing the same sad dilemma.

If you’re like many people you could possibly be searching the Internet praying that you’re going to find something that will show you how to find a way to stop foreclosure mortgage help. Although there are no easy one step solutions – There are a few things that you can do that can help the situation and save your home from foreclosure.

Many people are unsure of just what happens in a foreclosure situation. Basically, if you have missed at least one to three payments on your mortgage then a bank has the legal right to come and claim that property. Several years ago, this might have been something that banks would act on very quickly. However these days, you will find that banks and lending institutions are much more lenient in hopes that you will be able to work out a solution in order to stop foreclosure on your mortgage.

If you are able to get foreclosure mortgage help and stop the foreclosure on your home. You will find that most lending institutions will tack the remaining balance on to the end of your loan for the payments at your unable to make. Although most lenders may ask for you to pay some money up front – They will often times waive this if they feel that you’re going to continue on making your mortgage payments.

If you need more foreclosure help then quickly head over to http://foreclosure-help-now.com where you will find helpful foreclosure tips, advice and resources including information on foreclosure plans, negotiating and more Stop Foreclosure Mortgage Help.

Article Source: http://EzineArticles.com/?expert=Tom_Turner

Stop Foreclosure Mortgage Help – When You Need To Act Quickly

When the prospect of foreclosure rears its frightening head, the affected homeowner will benefit immensely from knowing what course of action will prevent the foreclosure from actually occurring. There are, surprisingly enough, several avenues open for those who want to avoid foreclosure, saving their credit ratings if not their homes. Knowing how to find stop foreclosure mortgage help will let you get to work right way and maximize your chances of a positive outcome.

Face Your Problems

Many of those facing foreclosure are so intimidated by the threat of losing their homes that they simply deny their situation until it is to late for stop foreclosure mortgage help to save them. You can avoid falling into this trap with a single phone call to your lender saying you are in need of stop foreclosure mortgage help, because as strange as it sounds, you lender is your best ally when it comes to stopping foreclosure. Lenders do not want to be saddled with empty homes which need maintenance and insuring until they find new occupants.

One way to get stop foreclosure mortgage help is to ask your lender to add your interest as a balloon payment at the end of your mortgage, instead of having to pay it each month. You can also consider selling your home, and as long as you get enough to pay the balance of your mortgage, you will save your credit rating and have a much easier time getting a loan on a new home. You can stop foreclosure by finding a way to come up with the funds to pay the late mortgage payments along with any penalties for not paying them on time.

Find A Specialist

You can consult with a stop foreclosure mortgage help specialist who can advise you on the best way to become current on your mortgage payments; there are thousands of such specialists and they have helped countless people in your position. Stop foreclosure mortgage help is really not difficult to find; the difficulty lies in summoning the will to find it.

You may be facing foreclosure fore reasons completely beyond your control, like a job loss, unexpected medical bills, of unforeseen litigation expenses. Finding stop foreclosure mortgage help can be as easy as performing an Internet search, or by looking in your Yellow Pages.

You can also find more info on buy foreclosures successfully and auction foreclosure. Foreclosureshomeguide.com is a comprehensive resource to get help about property Foreclosures.

Article Source: http://EzineArticles.com/?expert=David_Faulkner

What is a Short-sale and a Foreclosure?

A defaulting home owner’s lender, accepts a lesser compensation against the mortgaged estate and makes a sale. Such a sale is known as a short sale; one that falls ‘short’ of the actual value of the estate. On the other hand, a foreclosure involves a legal binding which denies the defaulter, the right to redeem the mortgaged estate. In a short sale, the proceeds generated on the sale of an estate are less than the actual value of the estate; and a foreclosure is simply the repossessing of an estate, if the owner is unable to make the abiding payments. Both the processes have their own set of difficulties. The wise option is to prefer the lesser of the two ‘evils’, which is short sale. Putting it briefly, short sale may be considered as a viable alternative to foreclosure.

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Reasons to prefer Short Sale over Foreclosure
Foreclosure should be avoided at any cost. It simply means losing the mortgaged home that could have fetched a decent value. The provisions of a foreclosure can be severe if the law grants the lender, the authority to recover its dues. The liability for a defaulter can increase, if the authority adds the costs of the arrears foreclosing on the lender. Although, both the procedures severely impact the home owner’s credit record, a foreclosure has more negative implications. A random and hasty selection may prove foreclosure as an easy way to end the agony. But careful inspection will prove otherwise. The current credit crisis in the world is a result of such haphazard action taken by borrowers.

A short sale record on the credit history, will at least enable the borrower to apply for an institution-backed loan in future, whereas a foreclosure will seal the chances of any help in the future. If a person opts for a foreclosure, there is an ineligibility status on the credit record for a period of 5 years. Short sale may be disastrous in consequences too, but only a year’s ineligibility for making a short sale, a lesser price to pay. This is according to the prevailing law in the U.S since May 31, 2008.

Filing for bankruptcy is another good option, until it is substantially proven by the concerned party, that a foreclosure was due to a big emergency like severe health problems or a big accident. Short sale is a tedious process involving a lot of legal, financial and tax issues. However, given a choice, it would be more suitable than a foreclosure.

Another problem confronting the mortgagor is, what if there are a number of short sales due? Wouldn’t foreclosure be a better option in such a situation? According to experts, a foreclosure should be considered as the last option, even in such cases. The amount for which a short sale or foreclosure is granted is considered as the mortgagor’s income by the IRS (Internal Revenue Service). Therefore, the amount is taxable, resulting in further liabilities. Hence, a short sale is preferable in this case.

A simple arithmetic calculation showing the comparison of both is explained below.

If a house is mortgaged for $500,000 and foreclosed on $400,000, the bank commission, holding cost, loss of interest, attorney fee and the miscellaneous amount will sum up to a huge deficiency. This deficit will be filed against the borrower, by the lender. Thus, searching for an easy way out, becomes a headache!

Now, consider that a short sale is made for the same amount. The proceeds generated would certainly be more than $400,000. Along with this, there would be no attorney fee or holding cost. Overall, the deficit would be significantly low. Another advantage is that you can always negotiate on the short sale deficit.

The bottom line is to accept the responsibilities of your actions and face the consequences bravely. In extremely tough situations, a level-headed approach will definitely help.

Article source: By Prashant Magar, http://www.buzzle.com

You have options to avoid foreclosure

If you are one of the many homeowners facing tough choices in today’s economy, we understand. We know that looking for assistance with your mortgage and deciding where to go for help can be confusing and frustrating. And we’re here to help.

Whether your financial hardship or current situation is temporary or more permanent, options are available. Even if you have decided you want relief from the responsibility and the burden of your mortgage payments, now’s the time to take action before it’s too late.

Source: www.fanniemae.com

Stop Foreclosure: What Mortgage Options Are Available?

Forbearance: Lenders may let you make a partial payment, or skip payments, if you have a reasonable plan to catch up. Tell your lender if you expect a tax refund, a bonus, or a new job.

Reinstatement: Reinstatement refers to making a payment that covers all your late payments, usually at the end of the forbearance period.

Repayment Plan: If you can’t afford reinstatement, but can start making payments to catch up, the lender may let you pay an additional amount each month until you are caught up.

Loan Modification: Your lender may agree to amend your mortgage to help you avoid foreclosure.

The options include:

• Adding all the missed payments to the loan amount and increasing the monthly payment to cover the larger loan.
• Giving you more years to pay off the loan, lowering the interest rate, and/or forgiving part of the loan, to lower your monthly payment.
• Switching from an adjustable-rate mortgage to a fixed rate mortgage, so you aren’t exposed to increases in your monthly payment.
• Requiring amounts for taxes and insurance to be included with your monthly mortgage payment so you avoid big bills in addition to your mortgage.
• Sign Over the Property to the Lender in Exchange for Debt Forgiveness: This can hurt your credit, but it is better than having a foreclosure in your credit history.

Source: The National Association of REALTORS®.

Stop Foreclosure By Forensic Mortgage Loan Audit

Consumer Warning! Federal Trade Commission (FTC) What is the First Nations Agency for Consumer Protection has released the latest warning about the scam operates homeowners in financial trouble, the mortgage is only a forensic audit.Foreclosure fraud scams can save systems from misuse of funds for emergency services that promise to sell to owners in need.

The Federal Trade Commission (FTC), a fraud case in exchange for an advance of several hundred dollars for work that is supposedly ready forensic accounting mortgages or auditors to prevent predatory lawyers legal guaranteed offer to review the mortgage documents you can see if your lender with the state and federal laws to comply with mortgages.

How a Mortgage Loan Audit Can Save Your Home From Foreclosure?

Control is a comprehensive analysis of all documents under a mortgage of real estate, including contracts, minutes and actions taken both lenders and borrowers. The objective of control is a mortgage, errors, injuries, false or fraudulent claims, which have taken place, while the mortgage available, and can also determine if the mortgage is in accordance with federal and state level, the bank legislation . With the help of Auditors and the audit of Housing Mortgage Specialists, tens of thousands of struggling homeowners facing foreclosure, and many winners.

Mortgage checks that is a growth strategy in popularity as a way for financially struggling homeowners to avoid foreclosure. The idea is that disclosure of errors of law or other problems with the mortgage, homeowners can get the power to negotiate a new loan and even reduce the amount owed.

An audit of a mortgage contains a detailed examination of the mortgage files and other documents. The examiner of things like the truth in Lending Act violations, the evidence of predatory lending is not working properly, and other payments. In some cases, such as accounting firms, the paper trail by which the mortgage was sold and repackaged to be able to break their investors, the bank can not prove ownership of the debt.

The provision of consumer mortgages Control Center, one of the claims of the leading service that 83 percent of all mortgages contain violations. The company spokesman said that so fast suggests that many borrowers were not qualified for loans and mortgages, as couldnt afford.

We reviewed dozens of online mortgage companies offer audit services. Some even sell the software, you can use to control your mortgage yourself.It sounds good. But only to problems or defects, the mortgage is not sufficient for the bank to reduce its debt, or modify to get the loan.

This article is originally published at http://www.becnn.com

Get Help to Stop Mortgage Foreclosure

Finding a way to stop mortgage foreclosure is sure to be on your mind if you are in the middle of it. What can you do to stop it? Who can you turn to for help? What options are there to stop foreclosure on your home?

You have many options open to you to stop foreclosure. The trick is finding the right one for your situation. The truth is that there is not one cookie-cutter approach to foreclosure. What works for one person does not always work for another.

The best place to start is to begin a dialog with your mortgage company. Be honest with them about what your financial situation is. Did you lose your job? Did you get divorced? Did you become disabled? Face up to what has caused your foreclosure in the first place. It may be a liberating exercise to simply own up to what is really happening in your life. Your mortgage company is in a much better position to help you if they simply know what is going on.

The sad fact though is that some mortgage companies will not be easy to deal with or may not deal with you at all. That is when you need to look elsewhere for help. There are many websites and resources to help you stop mortgage foreclosure on your home.

Foreclosure is a messy battle but it is one that you don’t have to fight alone. There are people who can help you, resources that you can turn to. This site is filled with information about how you can stop mortgage foreclosure and save your home. Look at the free foreclosure articles here to help you.

About the author:
This article “Get Help to Stop Mortgage Foreclosure” is originally published at stopping-home-foreclosure.com

How to Stop Foreclosure in Pennsylvania

Missing a couple of payments off your mortgage can be a difficult thing. If you are one of the many who have encountered such a problem, chances are you’ve also experienced being paid a visit by your lender or the bank with a piece of paper stamped foreclosure on it. Of course this is totally preventable and there are many ways to avoid foreclosure from happening. One can consider loan modification, a short refinance, a short sale or deed-in-lieu of foreclosure. Because of the several incidents of foreclosures happening throughout the state, many programs have been instated to help homeowners maintain control of their property assets. This is particularly strong in Pennsylvania.

The first thing you need to do is to contact the Pennsylvania Housing Finance Agency Foreclosure Mitigation Initiative or the PHFA. This Counseling organization was created to provide home owners who may be down on their luck and near foreclosure free counseling and a long term solution option to prevent their property from being seized. The PHFA will analyze the financial situation of the home owner and provide a realistic development plan for the property and how to maintain custody.

The HEMAP (Homeowners Emergency Mortgage Assistance Program) is a type of loan provided by the state of Pennsylvania ideal for home owners who may have had one or two misses in their mortgage payments but can provide a solid history of previous payments in the past. The loan is contingent of $25 per month in minimum payments or up to 40% of the total gross income of the person applying for the loan. There are other options that you can pursue in case you are not eligible for an emergency loan. You can apply for a continuing loan, or a refinance to an affordable loan which offers 100% financing with flexibility and adjustable-rate mortgage of a fixed 30 year plan.

There are many ways that a homeowner can salvage their mortgage in Pennsylvania. The important thing is to take initiative and not wait beyond 45 days of nonpayment to qualify for different loans or mortgage refinancing options.

This article is originally published at www.stopforeclosurecenter.com

How to Stop a CitiBank Mortgage Foreclosure

Americans in their thousands are currently having trouble making their monthly mortgage payments. And if you’re one of the unlucky ones, the most important thing you can do is contact your lender immediately. Lenders like CitiBank say they’re keen to help borrowers meet their payments. It’s important too that you don’t despair, put your head in the sand, or think missing a payment is going to end in foreclosure. But, for best hopes of a good result, if you are behind with mortgage payments, or in danger of missing one, you’ve got to act now. If you are a CitiBank customer, phone the bank immediately. Each lender has a different policy when it comes to mortgage aid procedures and here’s what you can expect if you’re a CitiBank customer attempting to stop a foreclosure.

1 Borrowers at risk of missing a payment should contact Citi at one of the following numbers:

CitiMortgage: (866) 272-4749.
Citi Residential Lending: (800) 211-6926 or (800) 430-5262.

2 CitiBank says it has a good track record helping distressed borrowers.
“Overall, in the fourth quarter of 2007, borrowers serviced by Citi who received extensions, modifications, reinstatements or repayment plans outnumbered those who were foreclosed by almost five to one,” the bank says.

3 CitiBank says that for those who make the call it can offer a number of possible solutions.

According to the bank, its loss mitigation efforts fall into two major categories:
a. Those with outcomes that lead to home retention, such as loan extensions, modifications, repayment plans and reinstatements.
b. Those with outcomes that result in the homeowner surrendering possession of the home without foreclosure, such as short sales and deeds in lieu of foreclosure.

4 CitiBank Modification Agreement.
The bank explains that this is typically used when the customer has a significant reduction of income that impacts his or her ability to pay and will last past the foreseeable future. ”Typically, the customer’s loan terms are modified in order to resolve the mortgage delinquency,” the bank says. “This agreement makes the mortgage more affordable for the customer.”

5 The CitiBank Repayment Plan option.
This is a written agreement between the borrower and CitiBank to implement a payment moratorium due to unforeseen circumstances wherein the property or employment status is affected. At the expiration of the term, the customer pays the total arrearage in a lump sum payment or elects a further repayment plan.

“This agreement is typically used when a customer has a short-term reduction of income that severely impacts his or her ability to pay for a short period of time,” the bank says. “The repayment plan brings the customer current over time as the payment obligations are met. It can also include a repayment plan under which the customer pays the regular monthly payment and an additional amount each month to catch up delinquent payments over time.”

6 Some borrowers will want to abandon their properties and make a fresh start. One of the options that may be available to them from CitiBank is the Short Sale.

This option is most useful when the homeowner does not have either the desire or ability to keep the property and is willing to sell it to pay off the debt. “This option is utilized when the amount owed less acceptable closing costs to sell the property is more than the value of the property,” CitiBank says.

7 Another option for those who want to put a bad home-owning experience behind them is the “Deed in lieu of foreclosure.”
According to CitiBank this, “occurs when the customer does not have either the desire or the ability to keep the property and is unable or unwilling to sell the property but is willing to sign the property over to Citi in exchange for stopping the foreclosure action.”
Deeds in lieu of foreclosure are generally accepted only after all other options have been exhausted.

8 Another possible option from CitiBank is called “Extension.”
This is used when the borrower has experienced a temporary hardship and is unable to bring the loan current.
“The customer has the ability to continue making future payments, but does not have the funds to completely reinstate the loan,” CitiBank says. “An extension may re-amortize the loan or defer the interest to the back of the loan. It brings the customer’s account current immediately.”
The bank adds that an extension is generally used in the early stages of delinquency when a customer is one or two payments behind. It warns that borrowers should not expect it to be available to them if they are seriously delinquent with their payments — more than 90 days past due or in the foreclosure process.

9 Another possibility, the “Reinstatement” option, is used CitiBank says when a customer that is 90-plus days past due is able to pay all of the delinquent fees, interest and principal owed to the bank with a single payment. ”This brings the customer’s account current immediately and allows him or her to continue to pay off the loan according to the original amortization schedule,” CitiBank says.

10 CitiBanks says it supports foreclosure prevention and backs education and counseling programs sponsored by national and local counseling agencies, including Reform Now (ACORN), Neighborhood Assistance Corp. of America (NACA), Consumer Credit Counseling Service (CCCS), Consumer Counseling Resource Center (CCRC) and other community-based organizations.

Read more: How to Stop a CitiBank Mortgage Foreclosure | eHow.com

What is Second Mortgages?

A second mortgage is simply a new mortgage placed against a property where there is already a first mortgage loan in place. It would not replace the first mortgage but is added onto the property title as a second charge.

First mortgage lenders have priority over the second mortgage lender. If the property is sold or goes into default the first mortgage holder is paid.
If the second mortgage were to go in to default, the second mortgage lender would essentially have to pay off the first mortgage loan to gain access to their collateral.

Lenders, therefore, consider seconds to be riskier loans.

Are There Different Types of Second Mortgages?

There are generally two types of second loans

1. Home Equity Lines of Credit.

A home equity line of credit (HELOC) will be set-up with a maximum limit available for the homeowner to draw against. It usually has an open term and can be drawn upon like a credit card. You can normally access the funds by writing a cheque, making a cash withdrawal or completing an online account transfer. This type of account is used in cases where homeowners may need access to funds but they pay no interest on the funds till they withdraw them.
Most HELOCS are based on the banks prime rate and can be interest only payments. Interest payments are made monthly on the outstanding balance for that month. There is considerable competition among banks and lenders for these HELOC mortgages.

2. Home Equity Loan

A more traditional second mortgage loan is the home equity loan. Home equity loans are fixed-rate loans with set payments each month. The interest rate is usually higher than that of a first mortgage but may be less than that of a HELOC. The benefit of the home equity loan is that it amortizes to a zero balance over the term of the loan. This type of loan is more common for people who need access to large amounts of funds at one time for such things as home renovations, large consumer purchases and college tuitions.

Your choice between these types of mortgages will depend on your individual needs, your budget along with the terms conditions imposed by individual banks or lenders.