CA HomeAuctioned - Cont'd To Pay HELOC??

[trying2*]

*can we do that?* --- In order to avoid future lawsuit, judgment, and/or collection agency, BK13? This is what we are thinking since it would be less hassle & stress dealing with the formers.

Little Info:
Owner-Occupied
1stLoan- Non-Recourse sold back to Beneficiary (Investor) with amount owe.
2nd Refi-HELOC Recourse with balance of $150K - BofA

We are thinking about negotiating with BofA for a settlement (before it's charged off-sold to colleciton), but don't really want to give them financial info. One of us have good income, paid off acreages ( would not be easy to sell, but know lien could be placed) & 2cars, and a financed truck.

We'd like to keep all of these and thinking about BK13, but don't want to give the trustee/creditors control over our future income. If we cont'd to pay back HELOC & CC debt, income taxes (relative to foreclosed home & investment property), we would still have control over our future spending & not limited to spending due to repayment plan.

Please, I would really appreciate some inputs & opinions regarding what we should do. Thanks in advance!

[darlyj]

If we walk, then my husband and I will continue to pay our HELOC (non-purchase money) and CC's as well, mostly because they have worked with us extensively over the course of the last year. We do not want to file BK since we, as well as you, have too much that we could potentially lose through BK and it is not worth it for us. Personal choice, but I understand where you are coming from.

[Kimbly]

Originally Posted by trying2*

We are thinking about negotiating with BofA for a settlement (before it's charged off-sold to colleciton), but don't really want to give them financial info. One of us have good income, paid off acreages ( would not be easy to sell, but know lien could be placed) & 2cars, and a financed truck.

My first reaction was I wondered if they would LET you continue to pay when the underlying asset is no longer present. However, gosh, why wouldn't they let you, right?!

I personally plan to negotiate with my 2nd (HSBC) after the first (BoA) forecloses and try and obtain settlement. In AZ, it's still a grey area as to whether a second can pursue a deficiency judgement when there's purchase money mixed in the loan so my circumstances are a bit different. But, in your shoes, I'd probably try to negotiate with BoA rather than pay the full $150k. What's the harm?

That said, I would NOT provide them ANY financial information. For a cash settlement, it shouldn't be necessary. Either they want some money in exchange for your credit report reading "settled, paid in full" or they don't. If you need to do payments to settle, that could change the scenario a bit, too.

Keep us posted!!

[trying2*]

Originally Posted by darlyj

If we walk, then my husband and I will continue to pay our HELOC (non-purchase money) and CC's as well, mostly because they have worked with us extensively over the course of the last year. We do not want to file BK since we, as well as you, have too much that we could potentially lose through BK and it is not worth it for us. Personal choice, but I understand where you are coming from.

Hi darlyj,

Thank you for your understanding. Lots to think about, huh? Income tax on forgiven debts might drive us into BK13 even if we could settle with BofA or cont'd to pay HELOC.

Good luck with your decision which ever you chose.

[trying2*]

Originally Posted by Kimbly

My first reaction was I wondered if they would LET you continue to pay when the underlying asset is no longer present. However, gosh, why wouldn't they let you, right?!

I personally plan to negotiate with my 2nd (HSBC) after the first (BoA) forecloses and try and obtain settlement. In AZ, it's still a grey area as to whether a second can pursue a deficiency judgement when there's purchase money mixed in the loan so my circumstances are a bit different. But, in your shoes, I'd probably try to negotiate with BoA rather than pay the full $150k. What's the harm?

That said, I would NOT provide them ANY financial information. For a cash settlement, it shouldn't be necessary. Either they want some money in exchange for your credit report reading "settled, paid in full" or they don't. If you need to do payments to settle, that could change the scenario a bit, too.

Keep us posted!!

Hi Kimbly,

Thanks so much for your input! I will definitely try to settle with BofA first and consult with a BK attorney further. Don't really want to go this route, but we might not have a choice if BofA won't settle and/or faced with taxes, etc!

Will definitely not give BofA financial info (I'd think they would want it). We are planning for a cash deal. Don't think there are any successful HELOC settlement with BofA on LoanSafe as of yet (?).

How you settled with your HELOC? Good luck!