HELOC loans, or Home Equity Lines of Credit, are great loans for helping with closing costs at the time of purchase, or for helping pay for vehicles, or house repairs, or any emergency. However, when the balance of your first mortgage exceeds the fair market value of your home, or the first and HELOC added together total more than your home is worth, HELOC’s become not so fun and endearing. In fact, many homeowners want to knock themselves over the head for taking them out and now having to be stuck in an underwater property.
But, what many borrowers do not know if the hidden secret behind HELOC’s and the lenders who hold them.
At the beginning the HELOC’s have very low interest rates, or are interest only, causing only a $200 or $250.00 dent in the borrowers pocketbook. But as the amortizing HELOC’s now reach maturity or rate adjustments, homeowners are finding themselves unable to make the payments.
That’s where we come in.
ORDER AN APPRAISAL AND KNOW WHAT YOUR HOME IS WORTH
If the home is upside down, meaning you owe more than its worth (with both mortgages added together), the majority of lenders will not foreclose or even attempt collection efforts, since they know they are in second position of priority. Therefore, the solution here is settlement. Not modification.
At the Law Offices of Jacqueline Salcines, PA, we handle hundreds of these second HELOC mortgage negotiations and have experience in settling them. By first ordering the appraisal and a payoff of the first mortgage, we know how to approach the lender to make a case for 100% settlement and write off of the HELOC loan. Often lenders have faulty assignments, have lost notes, and the debt is uncollectable merely because they don’t have the documents to pursue the foreclosure collection in court. When these scenarios arise, the majority of the lenders will agree to this position and sign a Satisfaction of Mortgage and release of the lien.
If not agreeable, then they may still settle for pennies on the dollar, again not a modification! A loan settlement means that they may agree to accept $1,500.00 or $2,000.00 on a loan of $150,000.00 or $200,000 (10 percent to the total debt owed) And the remainder is not paid in installments. Rather, it is completely erased and forgiven. So the only remaining loan on the property is the first mortgage.
At the Law Offices of Jacqueline A. Salcines, PA, we have extensive, over 25 combined years experience in navigating through mortgage, real estate and debt settlement law to get the possible results for our clients. HELOC loans can be troublesome. But we can help you navigate through the maze of homeownership and HELOC’s. Knowing the type of loan settlement you can qualify for and whether the servicer participates is our job.
Allow us to put our knowledge and expertise to work for you. The first consultation is always free of charge and can determine, after careful examination of the above details, provide options available to you. Call today.