HELOC debt to 0% CC...Now Chase froze my HELCO...What Now?
Date: Wed, 05/20/2009 - 00:32
My Situation:
In 2007 I had a real estate investment go bad. What happened was, I bought two houses for $40,000 total and gave a thieving contractor (Jeremy Evens of Indiana) $25,000. He never finished the work, so I've got two unfinished houses and $65,000 in debt. This was all done with money from my Home Equity Line of Credit (HELOC).
I've been recovering from the blow by transferring the balance back and forth from my HELOC to 0% credit cards for 12 months at a time. The rental income from my successful real estate investments have been paying down the debt. Basically, all the profit I would've been making has been going to paying down the debt. So everything for the bank and nothing for my hard work of trying to keep everything afloat.
The last balance transfer I did was $30,000 to a Chase card, and another $30,000 to a Citi card. Then Chase, who is the bank that I have my HELOC with froze my HELOC. So I've been fighting with them and an appraisal company to get my HELOC reinstated to a correct value. They said my rental property is worth less than some duplexes that recently sold in the neighborhood. Anyway, the problem was created by Chase.
In the meantime I'm researching plan "B". Plan "B" is not paying them back once October comes around because the 0% turns into the default which is 9% or more. I'm not really sure I just know I'm not going to pay it because I didn't cause this problem.
The worst case scenario is they sue me and the debt gets some fees on it and it becomes a lien on my house. They can't garnish my wages because I work for a South Korean company and live in South Korea. I'm an English Teacher once again and loving it. I'm pretty much untouchable as long as they don't try to foreclose on my rental properties. I will never default on my mortgages since the renters pay it at this point after years of work/rehabs. I don't think there is enough equity for them to justify this option now.
My Questions:
1. Can they force foreclosure in the future?
2. What is the likelihood of them suing me?
3. What is the likelihood of them foreclosing if they do get a judgment?
4. How should I prepare for October?
5. Should I pull out more money to pay for debt settlements down the road? (I'll try to do more 0% cards since my FICO is 722 now, but it is getting harder to do that)
6. Should I call the creditors and tell them I will not be paying them once October comes around...and tell them my hardship story?
7. Should I just let the default happen and let them call me first?
8. Do you know of a sequence of forms or a program that is good that will help me negotiate my debts?
(Once I default on Chase and Citi my other cards will default too because of universal default. I have a total debt of $80,000 on 0% cards.)
9. I need a good lawyer in Oregon. How should I go about finding a good one?
Thanks a million to anyone who responds with a serious knowledgeable comment.
In 2007 I had a real estate investment go bad. What happened was, I bought two houses for $40,000 total and gave a thieving contractor (Jeremy Evens of Indiana) $25,000. He never finished the work, so I've got two unfinished houses and $65,000 in debt. This was all done with money from my Home Equity Line of Credit (HELOC).
I've been recovering from the blow by transferring the balance back and forth from my HELOC to 0% credit cards for 12 months at a time. The rental income from my successful real estate investments have been paying down the debt. Basically, all the profit I would've been making has been going to paying down the debt. So everything for the bank and nothing for my hard work of trying to keep everything afloat.
The last balance transfer I did was $30,000 to a Chase card, and another $30,000 to a Citi card. Then Chase, who is the bank that I have my HELOC with froze my HELOC. So I've been fighting with them and an appraisal company to get my HELOC reinstated to a correct value. They said my rental property is worth less than some duplexes that recently sold in the neighborhood. Anyway, the problem was created by Chase.
In the meantime I'm researching plan "B". Plan "B" is not paying them back once October comes around because the 0% turns into the default which is 9% or more. I'm not really sure I just know I'm not going to pay it because I didn't cause this problem.
The worst case scenario is they sue me and the debt gets some fees on it and it becomes a lien on my house. They can't garnish my wages because I work for a South Korean company and live in South Korea. I'm an English Teacher once again and loving it. I'm pretty much untouchable as long as they don't try to foreclose on my rental properties. I will never default on my mortgages since the renters pay it at this point after years of work/rehabs. I don't think there is enough equity for them to justify this option now.
My Questions:
1. Can they force foreclosure in the future?
2. What is the likelihood of them suing me?
3. What is the likelihood of them foreclosing if they do get a judgment?
4. How should I prepare for October?
5. Should I pull out more money to pay for debt settlements down the road? (I'll try to do more 0% cards since my FICO is 722 now, but it is getting harder to do that)
6. Should I call the creditors and tell them I will not be paying them once October comes around...and tell them my hardship story?
7. Should I just let the default happen and let them call me first?
8. Do you know of a sequence of forms or a program that is good that will help me negotiate my debts?
(Once I default on Chase and Citi my other cards will default too because of universal default. I have a total debt of $80,000 on 0% cards.)
9. I need a good lawyer in Oregon. How should I go about finding a good one?
Thanks a million to anyone who responds with a serious knowledgeable comment.
