Question: We have a mortgage with 20% of the amount in a HELOC with both parts of mortgage through Wells Fargo (May 2007). The house value is continuing to decline below the value of the first mortgage. If we walk away, short sale or foreclose…can the bank try to collect on the HELOC? We live in Oregon.
Answer: -Absolutely… you should always try to work something out with the bank. They may not make you pay the full amount but will require you to pay something in most cases.
I will try to make this short and sweet. Home next to me in foreclosure by the 1st mortgage holder, US Bank. Owner of record is the son of previous, now deceased home owner. Deadbeat son was Quit Claimed the home in early 2006. The mortgages still in deceased ex-owners name. Two mortgages. The 1st is approx $116k and the 2nd is $29k. The home is a nice 2/2/2 with bird caged inground pool. Home built in 1987. Could need updating in kitchen. Also, was originally built as a 3/2/2 but one bedroom was converted to a sitting room, I think.
My home which is approx the same living space and built in 2005, no pool was appraised in March 2006 at 186k.
I believe this home would easily appraise for 200k.
Deadbeat son doesn’t care about the home. “Motion for Summary Judgment” was filed and hearing is scheduled for July 29th. There is someone currently living in the home (ex boyfriend of deceased owner). He has agreed he would lease home from me if I were able to buy the home.
How should I proceed?