Do BoA Helocs from 2004 (i imagine mine was typical at the time, in CA) balloon all at once at the end?
I thought I could pay interest only indefinitely but now suspect not.
I think mine matures around 2016 or maybe 2014? Could it be just 10 years?
I don't have any records and also now overseas.
My situation: All debts, including this 2nd Heloc, discharged 2010 Ch7 Bankruptcy. 215K Current on 1st with other lender. 70K BoA second, half in installment payments (current) and the other 35K in interest only, possible due soon in one lump (???). House is worth about 200K or less, so underwater 1st, completely under on second.
We are in our house but I am somewhat willing to walk away if it means a new house is somehow possible years down the line-- but rent is about the same as these payments now, so no savings there. Only thing is this balloon payment which kind of ruins everything.
So I guess that if prop values dont rise BoA wont foreclose. What do you recommend I do?
Should I stop paying the second? And just continue to live in the house and keep fingers crossed?
Should I try to settle the second (but how will the pressure get ramped up? we'll never make it to the foreclosure wire since they won't foreclose on it)? Can you even settle a debt that's already discharged?
It's all very confusing to me and I would love some help.