Received Unrequested HELOC Modification Packet

[NoMoreCards]

This is odd. Today in the mail I received a modification for my 2nd that was owned by GMAC and sold to SLS back in November.

My Bankruptcy was discharged in November, 2009, and I did NOT reaffirm. I have continued to pay.

Current HELOC has a balance of 12K, variable rate and payments are about 45 per month. I have not received a statement since November, so I send them 50.00 each month. This is principle and interest, and payable over (I think) 25 years.

The modification they are offering is "Interest only" for 7 years, then Principal and Interest thereafter. Get this, they want approximately 36 per month for interest only, and when it goes to Principle and Interest, they want 210.00 per month.

Who in their right mind would even consider this? Going from a 50.00 payment to a 210.00 payment wouldn't make much sense. Plus, my debt has been discharged and I enjoy the freedom of knowing I could walk away if the need arises.

Anyhow, I just wanted to pass this on as I found it interesting. Has anyone else received a unrequested loan modification packet from SLS?

[Pandora]

If you were discharged and you did not reaffirm - why are you even paying on the 2nd at all? Did they agree to the $50.00 a month payment in exchange for releasing the lien???

I would not pay on the 2nd unless they agreed to settle and release - of course, that is if you reaffirmed the 1st and plan on staying in the house that is....

[NoMoreCards]

If you were discharged and you did not reaffirm - why are you even paying on the 2nd at all? Did they agree to the $50.00 a month payment in exchange for releasing the lien???

I would not pay on the 2nd unless they agreed to settle and release - of course, that is if you reaffirmed the 1st and plan on staying in the house that is....

I did not reaffirm either loan. However, I do intend to retain and pay. The value of the home is equal to what is owed on the first and second together, so they would foreclose if it was not paid.