I am at the +/- 160 past due point on my HELOC with Wells Fargo. My only viable option is to settle the debt using proceeds from an early 401k distribution. They say they need to deny a loan mod before they can accept a settlement offer. They are requesting documentation of my financial situation in order to apply for the mod of the HELOC.
Does anyone have any experience with this? At this stage of the game, should I submit the paperwork and get the mod denied and then make settlement offer to Wells? Or....should I wait 2 more weeks for the charge off to occur and deal with the 3rd party collection agency?