Chapter 7 and WF HELOC Mod

[oc714]

We filed C7 and want to keep our home, we are trying to get input if anyone has dealt with WF regarding 2nd HELOC's Modifications. We took out a 2nd after we bought the home to make improvements to the house (yes big mistake). At that time we thought it sounded ok and it's at 9.75% with a payment of $755 a month. We can no longer keep paying this but I also understand we are liable for this money. We owe 310 k on the 1st and 85 k on the 2nd and house is worth about 330k. Has anyone out there dealt with a modification with WF if it's a recourse loan. Or is a recourse loan or are both wiped out????


We listed both mortgages on the petition so I know the first will not be our responsibility after we are discharged if we decided to walk away.

[newbie2]

We filed C7 and want to keep our home, we are trying to get input if anyone has dealt with WF regarding 2nd HELOC's Modifications. We took out a 2nd after we bought the home to make improvements to the house (yes big mistake). At that time we thought it sounded ok and it's at 9.75% with a payment of $755 a month. We can no longer keep paying this but I also understand we are liable for this money. We owe 310 k on the 1st and 85 k on the 2nd and house is worth about 330k. Has anyone out there dealt with a modification with WF if it's a recourse loan. Or is a recourse loan or are both wiped out????


We listed both mortgages on the petition so I know the first will not be our responsibility after we are discharged if we decided to walk away.

Both mortgages would be wiped out in the bankruptcy, not just the first. (You didn't reaffirm right?) Doesn't matter if it was a "recourse" mortgage pre-bankruptcy. Your Chapter 7 discharge wiped it out.

[oc714]

No, we are definetely not Reaffirming.

[helpforme]

OC714

Similar situation BK 7 discharged in 2007 included both mortgages, 1st 325K 2nd WF $160K two different lenders, I did not reaffirm either loan. Planned on staying ..housing values crashed...loss of income. In 2008 tried to get both loans MODIFIED for over 2 years with out success. I finally gave up, while keeping 1st current, I could not afford 2nd and made last payment in May 2010. I received a letter 2 months later from WF stating they may work with me. I contacted WF and they gave the option to settle since I had been declined for a modification. I offered around 4% to settle 2nd, all I had at the time WF nicely declined and charged off the loan. WF basically said when I could offer more contact them with a new offer. I just going to wait it out, my house value is 270K and continues to decline, 2nd completely underwater .......have not heard anything in over a year. I would like settle the 2nd lien some day!