Settling HELOC with Wells Fargo

Date: Tue, 01/04/2011 - 21:44

Submitted by anonymous
on Tue, 01/04/2011 - 21:44

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Total Replies: 3

My husband and I are both self employed and have taken a major income hit over the last few years. We're getting close to running out of reserve funds for living, mortgage, etc. other than our 401ks funds. I have a $200K WellsFargo HELOC on our primary residence. We want to keep our house and are trying to determine a strategy to debt settle the HELOC. I tried twice to modify the HELOC and have already attempted debt settlement once. I haven't missed any payments yet. They ask for 90%! Next step would be to stop making payments -- out of necessity. When I tried to debt settle, the negotiator said that they have a $70K equity position in the house. Think that is a little high of actual position, but wondering how likely it would be that they would foreclose on the house. I have up to 10% - 15% that I could possibly settle the debt, but wondering if this would be enough. At some point, bankruptcy might be an option --- we're close, but not quite there. Any advice anyone or any luck with Wells Fargo??

You will have to keep on negotiating with Wells Fargo in order t

You will have to keep on negotiating with Wells Fargo in order to modify the loan. You should reapply for a loan modification with them mentioning your financial hardship through a hardship letter. You will have to convince the lender about your financial hardship. Unless the lender is convinced about your situation, he will never consider your request.

In case, you don't get a loan modification, you should apply for debt settlement with them. You should let the lender know as to how much you'll be able to pay in order to settle your dues. You should negotiate with them in order to settle the dues for that amount. It will take some time but I'm sure the lender will settle the dues with you. In case, you cannot negotiate with your lender, you can take the help of debt settlement companies in this regard.

lrhall41

Submitted by Anna Sweeting on Tue, 01/04/2011 - 21:54

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Until it charges off, you will not get far with settlement. I s

Until it charges off, you will not get far with settlement. I settled mine at 200 days for 20.6% and could not get a better deal.

lrhall41

Submitted by dantheman on Wed, 01/05/2011 - 08:43

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Re: WFC Settlement

Hello,

I am in the same boat but owe more on my 2nd. Wells thinks there is $150K equity when there is not and have an expert appraisal to prove it.

They are taking around 50%+ off the original Heloc credit limit but trying to get them to be fair is difficult. If you can pay the $70K and they are writing down $130K seems like a deal to me.

Wells relies on their BPO which is really a CMA. They are unwilling to review a full appraisal. Seems unfair to me. I would love to find a way to sue them they really stink and thumb their finger at the law.

Must be all the big contributions to Washington.

lrhall41

Submitted by on Tue, 04/05/2011 - 13:43

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