Can I settle my HELOC?

[Malakingaso]

I have been reading a lot of posts on this site and have found it very helpful up to this point.

I am in good standing with both of my lenders and have never had a late payment. I currently only pay interest only payments on both my first and my second. My first loan resets this coming year and my second (HELOC) is a fifteen year with a balloon payment at the end.

My first loan is with Merrill Lynch and my second is with GMAC.

Here are my questions:

1) Can I modify my first loan even though I am current?
2) I have heard of people working with their HELOC lender and getting them to settle for 50 or 60% of the amount. Is this an option for me?

Thanks in advance for your help.

Malakingaso

[Moe Bedard]

Hi Malakingaso,


Welcome to the forum and thank you for joining...............

The modifications goven are up to the investors on the loans and given in a hardship situation. If the reset is going to cause the hardship you would need to show that in your hardship letter..........click on the link for examples.......
Examples of a Hardship Letter

You may need to wait before doing anything with Merrill Lynch because they were bought by Bank of America and will be finalizing the transaction in the first quarter of 2009............so their investors may not be doing modifications.........but you can call and see if they are...............

Bank of America | Newsroom - Press Releases


Also with the second you would need to call as well and see what the options are...........

GMAC Loss Mitigation
1-800-850-4622 ext. 2362609