Question: Hi, many of these subjects are interesting but my questions and situation is a bit different.
After going through a long process with my 1st mortgage, finally a loan modification with a 3 month trial is being worked on. Still owe about 145,000 on 1st mortgage. House value is now around 50,000. Took a HELOC of 30,000 of which I still owe 24,000. After unemployed and some rough times, just getting back on my feet. Heloc lender wants a lump sum at this point of 19,500. If I can’t come up with it then a down of $4,500 and a monthly of $200. If I could I would but can’t. I counter offer $50-$75 month. My weekly budget has no rooms for extras. I have not heard on my counter offer. Can you explain what will happen if they don’t accept to me, my house which I am trying to keep and working with my 1st lender. Thank you for any help or suggestions you can provide. will look out for a response.
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If you really want to keep your home, my first suggestion would be to let someone else try to settle your note for you. Banks typically won’t give the homeowner a great deal. Why should they right? They have an agreement and you’re not keeping your end of it. But a 3rd party can walk in there and the bank will sell the note to them for .10 on the dollar. They do it every day. $19,500 is way to much in my opinion. $4,500 for a FULL payoff is more like it. No more payments, done. That’s what you should be after. Be tough with them. This is why they are coming to you. They do not want to foreclose because it will end up costing them a lot more than $24,000 since they have to pay off the first, so they are really upside down if they end up with the property.