What is home equity loan bankruptcy?

I am not sure that such a thing exists – no lender is going to give you money to aid in filing bankruptcy at all.

However, if you are on the verge of bankruptcy and you have a mortgage – so lenders will offer you an alternative loan program (and on the rare occasion, a payment forebearance) in hpes of alleviating your financial burden long enough for you to regain economical ground.

So if you are on the verge of bankruptcy and you have a mortgage - call you bank and see if you can negogiate or request temporoary aide – esp in this economy of housing hell, somebanks are willing to help you out because in the long run, it could be beneficial to them to have you not file a bankruptcy against them.

On the other hand, if you have filed bankruptcy and you need a home equity loan - then you will have to check with a variety of banks to see when you would be allowed to apply. Individuals who have a dscharged bkrcy usually have to wait a certain amount of time before they can be granted a mortgage and usally will have stricterr guidelines to adhere to and harder terms (I.ie you might have to prove 4 years of relevant income (wit h stubs and tax returns) and then to be approved you may have to accept a higher interest rate or certain loan types.