Okay, I got the first letter of instructions to finalize my DIL. The first letter sent to me was just one page telling me to send my $1500 and that the DIL contract will be sent from
CW's lawyer by a week's time.
Well, I looked over this letter and it only had my first mortgage account on it and not my HELOC. So I called my negotiator and she said that my HELOC will never be listed on the paperwork but it is already understood by
CW and the investor (Bank of NY) that the HELOC will be settled / charged off by the $1500 lump sum that I am contributing. Otherwise, the DIL would not have been approved.
Then on Saturday I received the DIL docs from the lawyer and again nothing about my HELOC. I had my real estate attorney review the information and she said to go ahead and sign the paperwork and send it back and keep notes about what
CW said to me about the HELOC and because the bottom line is that they are setting up an exchange for the deed to the property for the release of the first only.
She suggested that in a cover letter with the signed docs, point out that the re-finance was done by a first and second and that I would expect that the deed in lieu contract would include both notes and mortgages. If necessary, I may also want a separate “transaction” releasing the second. She explained that they are asking me to acknowledge that there are no other liens – and that I can’t do that knowing of the second.
Furthermore, I requested my negotiator to update my debts with them as "debt settled" or something to that effect on my credit report once this is all done and she said that
CW has no control on how the credit bureaus list such information. So who do I contact about this?
***, I would appreciate your second opinion and anyone else who has gone through a DIL.