fert

Update on my 2 HELOC situation from 12-23-2009

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"Heloc as a first mortgage has anyone gotten one modified, unique situation" It had almost 500 views and no replies so I thought I would post the outcome now that I am done!

Original Post-

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.

OUTCOME-

I quit paying on the notes in Spring 2010 and moved back in so I could be owner occupied. I had only been renting it out for few months as it was. The value continued to drop. Someone stole the HVAC unit off the roof. The foundation cracked among some other lovely things. Mold started growing out of the bathroom wall. I got 3 contractors repair est. between 45K-75K. I did a short sale for 22K. The bank paid me $13K to leave. We closed in February 2012. The bank released me from all the debt.

All the stupid bank had to due was refi for me. Boy am I glad that they didn't now that it is over. But at the time I was going through it I would have given an arm or a leg to get them TO DO IT!

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How did you get to 13k? Did they offer it to you or did you negotiate it?

Who's the big bank? PM me if you don't want it out in public.

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