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HELOC (non purchase money second) recourse loan in Utah?

Is HELOC (taken out after the purchase of home) a recourse loan in Utah. Will the bank come after me after the foreclosure?
  • May 15 2011 - Salt Lake City
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Answers (2)

In addition to David's asnwer, Here is a good article that goes over the different options a lender considers when a HELOC has been defaulted on.

http://www.helocbasics.com/what-happens-to-a-heloc-in-case-of-default-or-foreclosure/

Utah is also a "One Action" state, meaning the lender either has to choose to foreclose or try to recoup their losses, but I suggest you consult an attorney for all of your options - bankruptcy may be something that could help.

http://www.utahbar.org/sections/banking/assets/one_action_rule.pdf
http://le.utah.gov/~2009/bills/hbillint/hb0438.htm
http://www.swlaw.com/assets/pdf/publications/2003/12/15/One_Action_Rule_Article.pdf
  • May 16 2011
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Yes, any money taken out of the home in the form of cash (or heloc) even on an owner occupied mortgage, the bank has the right to come after you.  Also depends on your bank but I know Wells and Bank of America will come after you for the money.  Sorry to be the bearer of bad news, just happened to a good friend of mine.  Is it too late to do a short sale?
  • May 15 2011
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