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Mortgage vs HELOAN, equivalent or is one more vulnerable if payment missed?

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NBrazil

Member
What is the name of your state (only U.S. law)? Georgia

Have (first) mortgage and HELOC. Because interest rates may go up over the term of it I want to roll them into one product with a fixed rate. Been offered a HELOAN at a good rate, and there are no additional "costs" (like a mortgage) because it is a loan (I know there is no draw).

I have 15 years to go on my mortgage, this HELOAN lowers my interest rate and is also for 15 years! The monthly cost is almost identical between the two scenarios (1st & HELOC or just consolidated HELOAN - within 5 dollars), but here's the rub:

Although I do not intend to move ever, my health is unstable and it is foreseeable that at some point my boss will grow tired of accommodating me (or I will get too sick to work) and I'll be without a job. If I bankrupt I could get by on Social Security only, but I may have to skip a few payments.

I know mortgages are cumbersome things, and that it takes awhile to start foreclosure so I have some breathing room, but I don't know about HELOANS. Don't know if the nature of the beast allows for quick foreclosures, or even if it is still called a foreclosure.

So my question is, am I more vulnerable with a HELOAN vs a mortgage if I miss a few payments to being homeless?
 



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