Can A Bank Call In My Home Equity Loan?

A home equity loan is a loan that is borrowed against the equity value in a home.

A bank can call in a home equity loan if the homeowner fails to repay the loan in the designated amount of time or if they default on the loan. In this case the loan that was taken out was used to pay off the remainder of the balance on the home. The money that was left over is give to the customer.

Home Equity Loan

A home equity loan is made when the borrower uses the equity in the home as collateral against a loan that they wish to take out. The equity is the difference between what the original loan on the home was minus the payments that have been made on the home. The act of taking out a loan on the home reduces the equity on that home.


In order for a home owner to qualify for a home equity loan they must have excellent credit. The loan must be paid back in a shorter time than the original loan o the home. If the loan is defaulted on the bank can come and take the home away to sell for profit in order to reap some of the money it lost on the loan.


A home Equity Loan can most definitely be called in by the bank if the homeowner does not keep their end of the bargain and repay the loan as promised. A Home Equity loan is a loan that should be taken very seriously. It may seem very inviting but the consequences are quite dire, if the payments aren’t made a homeowner can loose their home that they have had for years. A consumer should do the research and exhaust all other avenues before deciding on a Home Equity Loan.

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