Personal finance problems….help?!?

1)Sheldon has a home valued at $ 108,000 and an outstanding mortgage of $ 70,000. If his lender is willing to provide a home equity loan of up to 80% of market value, how much could Sheldon borrow using a home equity loan?

2) All of the following are useful ways to build a strong credit rating except
a.Make payments on time.
b.Open and use a charge account.
c.Talk with the lender if you foresee difficulty in making a payment.
d.Apply for a long-term loan and occasionally be late with a payment.
e.Open checking and savings accounts.

Please Help! Thanks!

Please help me settle a debate. Here is the scenario:

Say you buy a house for $ 100,000 and get into a 30 year mortgage with a bank. Over the years, you manage to pay off 70% of the principal (with interest), and thus you have built equity on your home (say 70%). Then disaster strikes and for whatever reason you can’t make your monthly payments. You try to sell the house on the market but no luck. For simplicity, you have $ 30,000 left to pay on your loan.

The bank ends up repossessing your house and auctions it off for $ 80,000. From the sale money, it keeps the necessary amount to cover your outstanding debt (say $ 30,000), and any administrative costs it has incurred (say $ 2,000). The left over money is $ 48,000.

Now, here is the question: where does this $ 48,000 go? Does the bank keep it or do you get it (since you built 70% equity)? Does your equity vanish if your house gets repossessed and auctions?

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