Looking for a mod on a heloc with CW

[ckl9988]

I contact CW for a mod on my heloc with them - was advised that my rate was too low and was referred to the US Urban & Housing dept. I have a 1MM heloc with a rate of Prime (3.25%). They would not advise me on who my investor is or give me any other info.

I advised them that my property value are less than what I owe and that if they foreclosed they would be wiped out anyways.

Here's my story:

I am S/E - my business has suffered greatly with retailers going under. I have taken many loses and unable to get paid on my invoices. Sales have been down over 60% and my bank statements reflect that.

My first is with WAMU and they are working on a mod for me.

Any suggestions - need help! Should I go the forensic audit route?

[LHarveyMadman]

Wow, that's a massive HELOC. Is it completely maxed out?

These days, if anyone were offered a $1,000,000 loan with a 3.25% interest rate, they'd be jumping for joy. It would be hard to do much better than that. A couple folks here (HopingtoFind, for example) were able to get temporary decreases in their interest rate, but this will only be in place until for 1-2 years.

Don't assume that you're off the hook if you go into foreclosure and your property value is less insufficient to pay off your HELOC. If your HELOC debt is non-purchase money, then could be treated as recourse debt. This means that the lender can sue you for the difference after foreclosure. So for example, if this HELOC was opened after purchase to pay for starting a small business or for other expenses, then you may still be responsible for all the debt, regardless of what happens to your home.

You had better consult with a real estate attorney about this.

[LHarveyMadman]

By the way, why do you think you need a forensic audit on your HELOC? It's pretty clear that you didn't get sold a HELOC with an absurdly high margin - your rate is at prime, which is impossible to get these days.