I have a client in CA who has 3 loans on a property:
  • 1st GMAC = $364,000
  • 2nd GMAC (HELOC) = $91,000
  • 3rd Chase (HELOC) = $91,000

  • Total Amount Due = $546,000
  • Market Value = $375,000
The client modified the 1st and his payment is now only $1,500/mo.  He can comfortably afford this and really wants to stay in the home.  He is hoping to get rid of the 2nd and 3rd via settlement/collections.

He tried to settle with these lenders directly but they were looking for $60k+ to settle.  He has not paid on the 2nd or 3rd in 6+ months and is thinking of just letting them go.  He is wondering what the most likely course of action will be for these HELOC lenders. 

He is thinking that if he continues to let them go, they will not foreclose due to the fact that there is no equity in the home.  He thinks that they will be sent to collections where he will be able to settle for much less.

What do you think will happen?

You need to be a member of REO Pro Network to add comments!

Join REO Pro Network

Email me when people reply –