Follow up to charge off on heloc

[gpolly123]

I posted last week about receiving a substitution of trustee and reconveyance from Wells Fargo regarding our 2nd. I never read the letter, the letter states that the paperwork we received was a release if the lien on our property. What does this mean? I am really confused our Heloc is 57000 our first is now only 79000,our house is worth around 300k. Why would they do this?

[justbroke]

In the prior thread, you wrote that it was a substitution from one Wells Fargo to another. What likely happened is that the Trustee was substituted so that the substituted Trustee could do the full reconveyance and release of the lien. Are you saying that you received two separate letters? One Substitution from Wells and then another from a different division/department in Wells?

A release of lien can be done through a Substitution of Trustee and Full Reconveyance where the "lien" is held through a Deed of Trust. If the Substitute Trustee was substituted so that you (the property owner) are now the Trustee, or then that's removing the Trustee and you own the property outright.

I can't say why they would do that, only in that they may have thought, with the bankruptcy, the 2nd was not recoverable.

[gpolly123]

Sorry for the confusion. We received a letter stating that they released the lien and with that was the Substitution of trustee and full reconveyance. This forn changed the trustee from WF Minnesota to WF in Los Ángeles