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Heloc as a first mortgage has anyone gotten one modified, unique situation


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I have a property that is WAY over encumbered. I actually have 2 helocs on it. The first HELOC is 160K, the 2nd one is 103K. The property is worth (get this) 35K! While interest rates are down I want to convert to a fixed note. Same big lender has the notes. They only have a secure lien on the first because they released the second for some silly reason when I got the first. Right now the property barely cash flows but the minute interst rates start moving I am going to be in big trouble as I have no cash to cover the difference. What can I do to convince the bank to fix these notes for me? Should I stop paying on the second because it probably isn't enforcable and get their attention? I called and tried to talk to them and tell them I have been hurt and need to do something NOW but as long as I am making the payments they are not listening. HELOCs are recourse loans so any ideas here? I do have the released trust deed showing the second as paid off but I have been paying on it.

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