FL HELOC advice needed - Loan Modification Forum

FloridaBoy · 02-15-2009, 08:50 PM

I have a few questions about my HELOC in FL. Thanks in advance for any suggestions.

I have a 1st $325K credit union
2nd HELOC $175K local bank (local bank)

I would guess my house is worth $400K- down from $550

I currently work but my co is in the midst of layoffs and paycuts. My wife and I are currently making ends meet with the help of our parents about $15K per year. We are both pretty down about the situation and trying to figure out what to do. We live very frugally and basically feel this is our only option at this point. I was builderand lost a $65K in the last 2 years and have been working in a new field the last 2 years. Unfortunately I foresee no turnaround in the near term that would help pay down this debt. My wife stays home nowwith our 2 young kids and earns no income(she used to help with the building and took a salary) . I would like to discuss a settlement on the HELOC to keep my house. I have some assets cars($30K) that are owned outright and some cash in our account that my wife's parents have given us to survive. $22K in CC debt. I would like to call the lender to discuss a settlement while I have something to offer(10-20%) from our parents $$. I am current on all my bills and would like to keep my house if possible. I have a relationship with the bank and can talk to a VP there. However if I lose my job my assets will be sold to live on so any offer I can make today will better than tomorrow.
Questions:
Should I call now while I am current on everything or do I need to be late on payments the HELOC?
Should I call an attorney before I make any offer?
Can anyone tell me how much they have been able to settle for or what I should offer?
As a builder will I ever be able to get a construction loan again(say in 3-5 years) if they do settle with me?
Should I start selling my assets and stop taking money from our parents to show the true financial situation?
Any chance that my HELOC be wiped out in a Ch 13 bankruptcy?
Will I get a 1099 for the writeoff amount?
Anything else I should be aware of?
Thanks for all your help and advice.

The Professor · 02-15-2009, 10:35 PM

Given that you are in Florida, one of the least borrower friendly places in terms of state law, you need to talk to an attorney skilled in real estate law, debt collection practices, and potentially bankruptcy as soon as possible.

Daniel

02-15-2009, 08:50 PM	#1 (permalink)
FloridaBoy Junior Member Join Date: Feb 2009 Posts: 3 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	FL HELOC advice needed I have a few questions about my HELOC in FL. Thanks in advance for any suggestions. I have a 1st $325K credit union 2nd HELOC $175K local bank (local bank) I would guess my house is worth $400K- down from $550 I currently work but my co is in the midst of layoffs and paycuts. My wife and I are currently making ends meet with the help of our parents about $15K per year. We are both pretty down about the situation and trying to figure out what to do. We live very frugally and basically feel this is our only option at this point. I was builderand lost a $65K in the last 2 years and have been working in a new field the last 2 years. Unfortunately I foresee no turnaround in the near term that would help pay down this debt. My wife stays home nowwith our 2 young kids and earns no income(she used to help with the building and took a salary) . I would like to discuss a settlement on the HELOC to keep my house. I have some assets cars($30K) that are owned outright and some cash in our account that my wife's parents have given us to survive. $22K in CC debt. I would like to call the lender to discuss a settlement while I have something to offer(10-20%) from our parents $$. I am current on all my bills and would like to keep my house if possible. I have a relationship with the bank and can talk to a VP there. However if I lose my job my assets will be sold to live on so any offer I can make today will better than tomorrow. Questions: Should I call now while I am current on everything or do I need to be late on payments the HELOC? Should I call an attorney before I make any offer? Can anyone tell me how much they have been able to settle for or what I should offer? As a builder will I ever be able to get a construction loan again(say in 3-5 years) if they do settle with me? Should I start selling my assets and stop taking money from our parents to show the true financial situation? Any chance that my HELOC be wiped out in a Ch 13 bankruptcy? Will I get a 1099 for the writeoff amount? Anything else I should be aware of? Thanks for all your help and advice.

02-15-2009, 10:35 PM	#2 (permalink)
The Professor Senior Member Join Date: Jul 2008 Location: 49er Gold Country Posts: 1,543 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: FL HELOC advice needed Given that you are in Florida, one of the least borrower friendly places in terms of state law, you need to talk to an attorney skilled in real estate law, debt collection practices, and potentially bankruptcy as soon as possible. Daniel

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