Loan Mods and Heloc Mods. ???

[acesfull]

Hi All

Is it more difficult to get a mortgage mod when you have a heloc loan? Especially when the Heloc is with another lender.
Also as anyone tried to get a heloc modified?
I would think the heloc lender would be more agreeable to give better terms, since they take a back sit to the first lein holder.
Thanks to all in advance.

Acesfull/ Loansafe success story.

[LHarveyMadman]

I did not have any problems getting my modification with a HELOC as a second. I agree with you, it is in the interest of the subordinate lienholder to agree to modification terms, since it should decrease the likelihood of the borrower going into default. With property values dropping, default could leave the subordinate lienholder without any proceeds from any foreclosure sale, though the lender could always sue the borrower for the loss.

[mike7311]

If you file bankrutpcy when a second lien holder sues you they still get nothing. Of course it depends on what chapter you file. Banks weigh this in to there decision and will do their own means test to decide whether its prudent. So defintely try to work it out. Good Luck...

[HopingtoFind]

We are working on a mod where first is with a different lender then HELOC. 1st doesn't care that you have a 2nd, it doesn't seem to effect them as far as modification is concerned.

We actually received a mod on our HELOC, lender offered to reduce interest rate for a couple of years. It'll just buy us some time to see if there are going to be principle write downs in the future, which is what we are really hoping for.

[acesfull]

Hi All
Great responses. When doing your income and expense sheet for your lender, you need to list the heloc correct? So would it be more benefical to try and get the heloc modified first or wait? I guess it just depends on your monthly cash flow vs expenses? If you get the heloc modified first then you have more cash at the end of the month. On the other side of that, if you have more cash at the end of the month, then you may not qualify for the mod with your first lender?
I didn't have a heloc when I received my mod from AHMSI. But right now I am trying to help a friend get a mod, friend has a heloc, so I am trying to get as much input as possible, so I can figure the best way to approach his situation and get him a mod.
I am thinking to just go with the original lender first, then work on the heloc.

I am hoping to hear from member here that had a similiar situation.
Thanks in advance.

Acesfull/loansafe success member.

[HopingtoFind]

Originally Posted by acesfull

Hi All
Great responses. When doing your income and expense sheet for your lender, you need to list the heloc correct? So would it be more benefical to try and get the heloc modified first or wait? I guess it just depends on your monthly cash flow vs expenses? If you get the heloc modified first then you have more cash at the end of the month. On the other side of that, if you have more cash at the end of the month, then you may not qualify for the mod with your first lender?
I didn't have a heloc when I received my mod from AHMSI. But right now I am trying to help a friend get a mod, friend has a heloc, so I am trying to get as much input as possible, so I can figure the best way to approach his situation and get him a mod.
I am thinking to just go with the original lender first, then work on the heloc.

I am hoping to hear from member here that had a similiar situation.
Thanks in advance.

Acesfull/loansafe success member.

Acesfull, You should list your Heloc payment on your expense/income statement, it will come up on the credit report if lender pulls one. As far as which one to modify first or if you should attempt to do them at the same time, as you mentioned it depends on your financial situation (income vs expenses) and what the lender/investor is looking for, as far as surplus vs deficit.

[acesfull]

Originally Posted by HopingtoFind

Acesfull, You should list your Heloc payment on your expense/income statement, it will come up on the credit report if lender pulls one. As far as which one to modify first or if you should attempt to do them at the same time, as you mentioned it depends on your financial situation (income vs expenses) and what the lender/investor is looking for, as far as surplus vs deficit.

Hi, HopingtoFind.
Thanks for your reply.

[HopingtoFind]

You are very welcome. I have found out going through this process that some things are not set in stone, things can be adjusted as you proceed...