It sounds like M&T is trying to screw you over for fees and penalties.
If the 1st mortgage was modded chances are that the first is underwater, and the heloc is potentially strippable in a chapter 13.
That could be your leverage against M&T, even if you don't choose to file a chapter 13.
The old credit cards are potentially another reason to go the chapter 13 route, to avoid tax issues on debt forgiveness.
You probably will need an attorney to represent you with M&T bank, and vaguely threaten chapter 13 and lien strip to get them to negotiate a settlement.
M&T is considered a "well run" bank, and is not a TBTF, so chances are they will be serious and businesslike in negotiations, not as random as the biggies like BofA and Wells. They won't want to take a writeoff unless they think you are serious about possibly filing ch13, so you should definitely
do everything with them through a lawyer, if you can find someone you can trust.
That's just my general thoughts.
Do they know you live in PA or is everything getting mailed to NC?
I think they can sue you in NC since the debt is based on a property there, and then they'd have to collect from you in PA.
Do you have equity in this house? Would it affect you if it was foreclosed on?
If the 1st mortgage was modded chances are that the first is underwater, and the heloc is potentially strippable in a chapter 13.
That could be your leverage against M&T, even if you don't choose to file a chapter 13.
The old credit cards are potentially another reason to go the chapter 13 route, to avoid tax issues on debt forgiveness.
You probably will need an attorney to represent you with M&T bank, and vaguely threaten chapter 13 and lien strip to get them to negotiate a settlement.
M&T is considered a "well run" bank, and is not a TBTF, so chances are they will be serious and businesslike in negotiations, not as random as the biggies like BofA and Wells. They won't want to take a writeoff unless they think you are serious about possibly filing ch13, so you should definitely
do everything with them through a lawyer, if you can find someone you can trust.
That's just my general thoughts.
Do they know you live in PA or is everything getting mailed to NC?
I think they can sue you in NC since the debt is based on a property there, and then they'd have to collect from you in PA.
Do you have equity in this house? Would it affect you if it was foreclosed on?
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