Hello,When is the best time to try to negotiate a short payoff of a HELOC? Do you call them immediately after you are certain that the first will foreclose and you can't do anything about it or do you do it right before the final foreclosure sale? This question is in respect to a situation where you have both a 1st and a 2nd with the same lender. Any advantages or disadvantages either way and how will the lender react? If you negotiate a short payoff on a HELOC, will the same lender delay or accelerate a foreclosure or take a different path like decide to go after a deficiency?
Hope it's alright if I jump in....refinance is not the same as a HELOC. The refinance was probably for your main mortgage on the home. A HELOC is a seperate loan which usually is used to pull equity ($$) out of the house. HELOC--Home Equity Line of Credit. My suggestion is to call your lender ASAP and let them know what your situation is and let them know you are struggling and need a modification. I don't believe being behind is a requirement any longer on fixed mortgages. Pick up the phone..don't be afraid!Hi Cat,
Question- I have refinanced my house in 2006 at 7.25% for fixed 15 years. Does it cosidered as HELOC? What will happen If I stop the payement in order to process for loan modification?
hello MoeYou will have to look at your loan documents to see what type of loan you have.............and also the Deed of Trust for that loan will tell you the what method the lender will use if you do not pay the second lien under the section called Acceleration Remedies.
I am so confused that according to the HAMP program,the HELCO will be lowered interest rate or some of its pricipals forgiven along with 1st loan modified ( in the case of HELICO considered as second morgage ) may be i am missingHello,
I hope you are still viewing and participating in this Thread. I quoted the Message above, because I have exactly the same question, except that my 1st and HELOC are not the same lender.
The timing question for negotiating the HELOC is very important to me also. Hope you can answer it.
Thank you.
HOTLANCER... You just gave me something to think about. Late 2009, we had a great BofA Heloc settlement of $12k for $104k loan. As I recall, letter said it was PAYMENT IN FULL. I still got a 1099 in which I PAID TAXES on the 'loan forgiveness' of $89k (since rest was interest). Are you saying I should NOT have paid taxes on the difference since the HELOC was paid in full at $12K? If so, I'll have to file an amendment to my 2009 taxes! PLEASE ADVISE!! This could save me MUCH NEEDED $ as I have a foreclosure 2010.Get it settled and MAKE SURE IT IS OFF YOUR CREDIT REPORT AS PAID IN FULL!! If they 1099 you for the difference and then record your credit report as "settle for less than the full amount" consider going AFTER them for a violation of the Fair Credit Reporting Act. Otherwise, the bank could sell the account to one of those companies that buys bad credit card debt for pennies on the dollar (which is essentially what you are offering anyway) and THEN THAT COMPANY goes after you for the FULL AMOUNT PLUS FEES, COSTS, HIGH INTEREST, ETC. Dont take that chance!!!
HOTLANCER... You just gave me something to think about. Late 2009, we had a great BofA Heloc settlement of $12k for $104k loan. As I recall, letter said it was PAYMENT IN FULL. I still got a 1099 in which I PAID TAXES on the 'loan forgiveness' of $89k (since rest was interest). Are you saying I should NOT have paid taxes on the difference since the HELOC was paid in full at $12K? If so, I'll have to file an amendment to my 2009 taxes! PLEASE ADVISE!! This could save me MUCH NEEDED $ as I have a foreclosure 2010.
LOOKING... how did it work out for you tax-wise... did you get a 1099-C and have to claim as income? Did your credit report reflect 'paid in full' or charge off?i got mines settled $ 40k for $290K pretty good deal
yeah i got 1099 tax but i have loss carry over so oka and my credit paid in ful but in to toilet i dn't car any more just buy cashLOOKING... how did it work out for you tax-wise... did you get a 1099-C and have to claim as income? Did your credit report reflect 'paid in full' or charge off?
Were you not eligible for the debt forgiveness act?HOTLANCER... You just gave me something to think about. Late 2009, we had a great BofA Heloc settlement of $12k for $104k loan. As I recall, letter said it was PAYMENT IN FULL. I still got a 1099 in which I PAID TAXES on the 'loan forgiveness' of $89k (since rest was interest). Are you saying I should NOT have paid taxes on the difference since the HELOC was paid in full at $12K? If so, I'll have to file an amendment to my 2009 taxes! PLEASE ADVISE!! This could save me MUCH NEEDED $ as I have a foreclosure 2010.