What are the consequences of defaulting on a 100 LTV home equity Loan?
If you default on a 100 LTV home equity loan, the lender has the right to foreclose on your property. Even if you continue to pay your primary mortgage while you go into foreclosure on your secondary loan, the secondary lender can still foreclose. Your property will be foreclosed on, and the lender will sell it. The first part of the money will go towards paying off your primary mortgage lender. Then the next portion of the money will go to the home-equity lender. If there is any money left over after the sale, you will receive it.