Heloc
- Thread starter Moe Bedard
- Start date
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?
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?
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?
You 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.
Hello,
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.
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!
They may give you an answer you want to hear!!!!
I wish you well through this process.....
hello Moe
i have question
I have same lender first and Heloc and try to loan md. if they say ok md then do they do md first and same time md on Heloc too( reduce interest).??
thanks
tomser
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 missing
I refinanced cash out and after that same time set up HELCO with the same primary house with the same lender. how differences refinanced cash out and HELICO.
what if I request loan md---what hapens the HELICO( the HAMP program help the HeLICO rate lowere or pricipal reduction or foregiven ??)
what if I foreclosure--- the HElCOand refinanced cash out deficiency judgement and following me around ??
what if ---short sales or walk away or file the bankrupcy then what happend the HElCO and refinanced cash out , chasing me with deficiency judgement.
home value 680k(zillow) loan 550k and HElCO 300K ( same lender)
what kind of chances I have. Which choice is the bether than other one if loan md is rejected.
I also have 2 renta houes ( upside down)with refinanced cash out with the same lender . Then what happens if the above sam situation( forclosure,or short sale or walk away and or bankrupcy) as investment property. the refi cash out any deficiency judgement chasing me aroud --only choice with bankrupcy ???
I appreciate any comment on these situations
best wishes
tomser
what if I request loan md---what hapens the HELICO( the HAMP program help the HeLICO rate lowere or pricipal reduction or foregiven ??)
what if I foreclosure--- the HElCOand refinanced cash out deficiency judgement and following me around ??
what if ---short sales or walk away or file the bankrupcy then what happend the HElCO and refinanced cash out , chasing me with deficiency judgement.
home value 680k(zillow) loan 550k and HElCO 300K ( same lender)
what kind of chances I have. Which choice is the bether than other one if loan md is rejected.
I also have 2 renta houes ( upside down)with refinanced cash out with the same lender . Then what happens if the above sam situation( forclosure,or short sale or walk away and or bankrupcy) as investment property. the refi cash out any deficiency judgement chasing me aroud --only choice with bankrupcy ???
I appreciate any comment on these situations
best wishes
tomser
SETTLED for 10% on HELOC, got 1099 and PAID TAXES ON IT??! HELP!!
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?
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 cash
Loan Forgiveness
There are 2 issues when a loan is 'forgiven' - one is between you and the bank, the other between you and IRS.
When a loan is forgiven, it just means the bank will not pursue you for deficiency. The bank will still issue a 1099 (A if foreclosure, C is short sale) - this forgiven amount is reported to the IRS.
With the IRS, the forgiven amount is counted as income to you. If it's a primary residence, there's loan forgiveness with taxes, therefore no taxes owed straight out. If rental property (business), then can apply towards any Loss Carryovers from previous years. Insolvency (form 982) status under Forgiveness Act allowed for this - I applied (lost) most of my Loss Carryovers and had limited tax liability.
There are 2 issues when a loan is 'forgiven' - one is between you and the bank, the other between you and IRS.
When a loan is forgiven, it just means the bank will not pursue you for deficiency. The bank will still issue a 1099 (A if foreclosure, C is short sale) - this forgiven amount is reported to the IRS.
With the IRS, the forgiven amount is counted as income to you. If it's a primary residence, there's loan forgiveness with taxes, therefore no taxes owed straight out. If rental property (business), then can apply towards any Loss Carryovers from previous years. Insolvency (form 982) status under Forgiveness Act allowed for this - I applied (lost) most of my Loss Carryovers and had limited tax liability.
Hi,
I have a HELOC for 700,000 with citibank. Do you know of anyway I can renegotiate that loan to a fixed amount. I tried discussing it with citibank but was told that it was no longer convertable since they cancelled the equity line on the house because the value went down. I never received a letter and they said there was nothing they could do. Help, do you know any firm that can help me negotiate the price. Also, I can't refi because I short sold my vacation home do you know how I can get it off my credit it was with wells, originally with National
I have a HELOC for 700,000 with citibank. Do you know of anyway I can renegotiate that loan to a fixed amount. I tried discussing it with citibank but was told that it was no longer convertable since they cancelled the equity line on the house because the value went down. I never received a letter and they said there was nothing they could do. Help, do you know any firm that can help me negotiate the price. Also, I can't refi because I short sold my vacation home do you know how I can get it off my credit it was with wells, originally with National
Shelley
I recommend you visit this thread and read post #1. http://www.loansafe.org/forum/debt-settlement/37996-strategy-settling-your-2nd-62.html
Although you apparently have multiple concerns, it's a start. Good luck to you.
I recommend you visit this thread and read post #1. http://www.loansafe.org/forum/debt-settlement/37996-strategy-settling-your-2nd-62.html
Although you apparently have multiple concerns, it's a start. Good luck to you.
Ca heloc
HELOC QUESTIONS:
(1) Is a HELOC on unencumbered property considered as a "lien" against property in the event of default?
(2) Can a fraudulent foreclosure of a HELOC force a sale of the property and eviction of homeowner to recover debt?
(3) If property is sold at a Trustee's Sale following a fraudulent foreclosure for less than Fair Market Value, doesn't the bank owe the difference to the owner?
HELOC QUESTIONS:
(1) Is a HELOC on unencumbered property considered as a "lien" against property in the event of default?
(2) Can a fraudulent foreclosure of a HELOC force a sale of the property and eviction of homeowner to recover debt?
(3) If property is sold at a Trustee's Sale following a fraudulent foreclosure for less than Fair Market Value, doesn't the bank owe the difference to the owner?
mp3rmd
Welcome to Loansafe and thanks for your post.
I recommend you consult with a professional in your state for answers to these rather elementary questions. Each of the 50 states has its own mortgage and FC statutes.
Welcome to Loansafe and thanks for your post.
I recommend you consult with a professional in your state for answers to these rather elementary questions. Each of the 50 states has its own mortgage and FC statutes.