HELOC offer before foreclosure Calif.

[ytrewq]

CA 1st $K250, HELOC $50K both recourse. I am about 2 weeks away from scheduled auction for foreclosure. Just received an offer from BOA to settle my HELOC for 50% if I make payments or 33% if I pay at once. I don't intend to accept either offer and intend to just ignore them until SOL expires or some very low settlement offer but just want to confirm that I should not contact them at this time for any reason. Thanks.

[Evan Bedard]

CA 1st $K250, HELOC $50K both recourse. I am about 2 weeks away from scheduled auction for foreclosure. Just received an offer from BOA to settle my HELOC for 50% if I make payments or 33% if I pay at once. I don't intend to accept either offer and intend to just ignore them until SOL expires or some very low settlement offer but just want to confirm that I should not contact them at this time for any reason. Thanks.

Yes I would not recommend accepting their offer at this time. Are you planning on walking away from the property or are you still currently working on a modification to avoid the upcoming sale date?

[TomEason]

ytrewq

As Evan advises, you shouldn't settle your BOA HELOC. Sounds as if you intend to walk (let the 1st FC). If that's the case, it would be folly to pay BOA any $$, as that loan will soon become a virtually worthless SOJL.

FYI, the generally accepted rule is: never deal with one's junior loan until after the 1st is permanently handled.

Again, when, and if, the TS occurs, that BOA HELOC will become a SOJL. FWIW, personally I'd never consider settling with a SOJL.

Good luck.

[ytrewq]

Thank you Evan and Tom. Yes I am walking and have not answered any phone calls or correspondence from BOA, just let things proceed. I was a bit surprised to see an offer before the HELOC had become a SOJL but maybe they do that often and I hadn't noticed it in the forum. Again thanks for confirming my approach as sensible.