Wells Fargo HELOC Collections
Date: Tue, 06/01/2010 - 17:31
My CC's are settled and I am now working on my Mortgage situation. Probably I will let the first foreclose in the next couple of months and since it is non-judicial they cannot get a deficiency.
However, my HELOC has now charged off with Wells. I know I will have to settle it. However, I have no extra money to do that with until next March. I would appreciate opinions on how best to deal with WF HELOC Collections until then. I would like to avoid judicial proceedings.
Your state may be different, but the foreclosure on the first wi
Your state may be different, but the foreclosure on the first will wipe out the 2nd. In short sale situations you probably will have the most bargaining power to settle. So I would consider a short sale before foreclosure if your state allows them to come after you for the deficiency. I would try to settle it low and them have long term payments on it if you have to pay it back.
The second loan may still remain collectible even when the house
The second loan may still remain collectible even when the house is foreclosed. The second mortgage lenders may eventually charge off the account and sell it to a collection agency. The CA may then sue the homeowner for the remaining amount.
Quote:Originally Posted by SCThe second loan may still remain co
Quote:
Originally Posted by SC The second loan may still remain collectible even when the house is foreclosed. The second mortgage lenders may eventually charge off the account and sell it to a collection agency. The CA may then sue the homeowner for the remaining amount. |
Correct. In my State (Missouri) the First Mortgage cannot receive a deficiency judgment because it is not a judicial proceeding. It is simply a trustee sale.
However, the second (100% underwater) becomes an unsecured debt and they can and will come after me. I am looking for anybody who has dealt with this situation and has suggestions on how to delay them from going to court.
Dan.... Just and idea..... will wells let you start making sma
Dan....
Just and idea..... will wells let you start making small payments 150-250 per month on the charged off HELOC ?
I have a 200k HELOC with Chase....Original payment was about $850 per month...... I went 6 months late.... no payments .... then they said .... can I do 325$ per month..... I said yes...... to keep them at bay for a while I settle out my ccs ..... I have been paying for 6 months and no collection or legal activity has been started. Just paying my 325$ a month..... buying some time until I have money to settle with them.
Thats not a bad payment on a 200k debt !
Anyway.... maybe if it goes to a CA ... you can work something out with them ?
Or offer 5% settlement....... after all .... your are the man !
mac
Haha. Good to hear from you brother. I have been thinking of
Haha. Good to hear from you brother.
I have been thinking of doing exactly that. It is charged off, so the question of whether to charge off is no longer an issue. I reached the conclusion that wf would not help with short sale or anything else while it was at the first collection level...and guess what!! One day after chargeoff they offered 60% settlement. I told them I was now out of funds to do that until 2011. I then asked about a short sale and was told the 60% was good for that. So, another decision. Maybe short sale.
Hope all is well with you.
The problem is that 60% on a second probably won't work for a sh
The problem is that 60% on a second probably won't work for a short sale, because that would mean the house would have to sell in the short sale for the entire first mortgage$$ + 60% of the second$$, and these days most houses are underwater on the first. First mortgages won't let homeowners donate to the seconds in the transaction unless they (the first) get paid their entire amt.
You could pay the 60% off today to settle the second, and then either short sale or FC on the first without the second intervening but not many people have 60% of their seconds available to settle in cash.
What you really need is for the second to get down to maybe 10-20% as a settlement, then settle that, then foreclose or sell in a short sale. If a first mortgage has to take a hit of maybe 10-20% in a short sale they usually are fine with that without any deficiency judgements.
Hi Annoyed, I agree with you. My thought is that the 60% is not
Hi Annoyed,
I agree with you. My thought is that the 60% is nothing more than a starting point--but a good one. If I get a short sale contract that is in the ballpark, I will approach them for a better settlement out of proceeds.
Hey Dano, If Wells participates in HAFA (google Wells Fargo+HAF
Hey Dano,
If Wells participates in HAFA (google Wells Fargo+HAFA) it would mean they agree not to seek deficiency after an approved short sale.
There are certainly requirements for you to meet, but definitely worth checking into.
Mileage may vary
Mac and Annoyed....I DID settle the HELOC for 20%, roughly $20k
Mac and Annoyed....I DID settle the HELOC for 20%, roughly $20k on $100k debt. Now I am trying to short sale or forclose the first. Best wishes to you both.