Replies to This Discussion

Permalink Reply by Katerina Gasset on June 9, 2010 at 6:41pm

Keep fighting but it is still likely they will charge the HELOC off. But most of the time, we have found that it is easier to get a smaller payoff when the loan is charged off, unless a collection agency buys it. A lot of the time it just goes to a charge off dept at the lender.

Permalink Reply by Cami Pinsak on June 9, 2010 at 6:51pm

Thanks Katrina. The lady said that the min. payoff to avoid charge off was $136. She also said that if HELOC was charged off that it would void the short sale.

Permalink Reply by Ute Ferdig on June 9, 2010 at 7:30pm

Yes, the junior HELOCs do charge off and once they are charged off, most of the times it will be even more difficult to get a lien release because they will only settle for a higher amount (like 60 or 70% of the loan balance). I personally have not heard of a charge off after only 90 days late. I have seen the 180-day no payment at all charge off, but things change all the time in this industry. In addition to the difficulty of getting a lien release after the charge off, it will also be an added hit on the borrower's credit report. All in all, not a good situation and I would recommend avoiding a charge off if at all possible.

Permalink Reply by Esther M. Camarotte on June 10, 2010 at 1:03am

Charge off is what happens to HELOCs. This is because they Home Equity Line of Credit so they are a line of credit like a credit card that is tied to the home. Which means they will sell it to a collection agency, which is far more difficult than dealing with a bank directly. The first ALWAYS dictates what the 2nd or any lien behind them gets. Now the 2nd may have insurance on their debt so they may not be willing to negotiate any less than they want in order to be made whole on their debt. Foreclosure may be what the 2nd wants. I wish I had better news on that. They may make the homeowner sign promissory notes to collect until the debt is paid. If they are overwhelmed with debt they might want to consider bankruptcy depends on their specific financial situation and what their attorney recommends. This is something that their divorce attorneys will have to be consulted on as either attorney may not want their client put in this shakey financial position and again foreclosure might be the best outcome for the couple.

Permalink Reply by NANCY S. WERT on June 22, 2011 at 4:21am

I am having the same problem with Chase being the first and BOA the second.  They have placed it in their charge off department. I can't talk to anyone either even after sending email messages to the negotiator.

 

I have a health issue hardship with no money.

How do they expect us to move these properties forward if can't even find the person who needs to assist us.

 

Nancy