logo

Debtconsolidationcare.com - the USA consumer forum

Short Sale and the HELOC

Date: Thu, 07/01/2010 - 20:24

Submitted by anonymous
on Thu, 07/01/2010 - 20:24

Posts: 202330 Credits: [Donate]

Total Replies: 3


I have a home in St. Louis and got the treatment from Chase on a modification. Long story short......wasn't behind until I got in bed with the mod program. With that said I am upside down $10k in late fees/underpayments while we still wait in modification purgatory.

My wife and I decided to go with a short sale. We approached the HELOC holder to negotiate a separation of sorts to pay them independently. They were somewhat shocked by this. They have yet to return my call.

Have been searching all over the Internet about the best way to negotiate the short-sale and the HELOC. I have a short-sale team working out the details, but I am still in the dark on how the HELOC figures into all of this. If the 1st agrees to the deal and 2nd does as well.........what does that really mean? Missouri apparently is a non-recourse state, but does that hold true for the 2nd? If not is it possible to work our an arrangement with the bank and not a 3rd party? Probably an attorney is a better course of action and currently pursuing legal counsel so I don't further bollocks things up! Please Help!


Hi. I'm in Stl and have a similar situation with wf. The way I did this was to settle the heloc for 25% and then I was just left with the First and the related issues. In the end, they may foreclose anyway...but I have owned the home for 8 years and the first should not be much underwater...even though it has lost half of its value. AND don't count on MO being non-recourse. There is absolutely nothing in the law to prohibit the first from coming after the owner in a foreclosure for a deficiency. There is much bad info on this. But the attorney who I paid says they certainly can come after us. btw...if you join the forum feel free to pm me.


lrhall41

Submitted by dantheman on Thu, 07/01/2010 - 20:55

( Posts: 860 | Credits: )


Good to know! Talked to a lawyer today and we are going to sit down and figure things out. Internet is full of mis-infomration and it is good to hear from someone with a similiar situation. I think it all comes down to how it is negotiated by the attorneys. I think the first will be OK, just need to know what the 2nd will do. Would rather settle it and be done with it than have a 3rd party come after me. This is all such a mess that could have simply been avoided had we not be lied to about a plan that really doesn't exist!


lrhall41

Submitted by F. Munster on Fri, 07/02/2010 - 19:15

( Posts: | Credits: )


8 months of research and I conclude that helocs can come after you for deficiency so if you don't settle it can come back years down the line...and on the first, because the statute:

Here are the applicable statutes:
[URL="http://www.moga.mo.gov/statutes/C443.HTM"]http://www.moga.mo.gov/statutes/C443.HTM[/URL]

...because the statutes do not prohibit a deficiency collection on a first mortgage that is forclosed by trustee's sale it is quite possible in MO to obtain one. Whether they do so becomes entirely up to the lender.

Good luck with yours. I'll let you know what happens with mine.


lrhall41

Submitted by dantheman on Fri, 07/02/2010 - 19:42

( Posts: 860 | Credits: )