My HELOC Keeps Rejecting My Loan Modification Attempts

“Dear Steve,

I am writing regarding a 2nd (HELOC) on my Condo. When I lost my job in 2010 – I fell behind on my mortgage and HELOC – I went to then Countrywide and they said they would work with me but, didn’t – then when it was sold to B of A, the situation got worse.

I finally filed a compliant with the AG’s office in AZ and finally was able to get a mortgage modification – however, during this process which took more than a year – I found my HELOC had been sold to another firm.

I never received any notification regarding the status of the HELOC. Since receiving my modification in July of 2011 – I have been trying desperately to reach a modification with the firm holding the HELOC – not one of the proposals has been accepted – I’ve sent in financial data (I’m making a 1/3 of what I did when I purchased the home), I’ve responded to their requests – and all have come back with unaffordable re-payments…..

So, My question, what can I do to negotiate the HELOC to a modification? I was told that this would be easier than the first but, that’s not the case – should I seek legal advice?


Dear Mary,

Without knowing more about your balances I can only give you some general advice but I can point you in the right direction.

No problemIf your HELOC is above the value of your home you might want to consider a chapter 13 bankruptcy which would strip the lien from your property.

If the HELOC is not above the value of the property then you can use the free resources below to explore a resolution.

One point many are confused about is no lender is required to modify any mortgage they don’t want to.

If you do decide to pay for legal advice I would suggest you find a real estate attorney who is licensed in your state. And also understand there are lots of people out there who will lie to you to make the sale. You might want to become familiar with the FTC rules on Mortgage Assistance Relief Services before you pay anyone.

See also  Loan Modification Companies May Not Charge Up-Front Fees Says Florida Attorney General

Thank you so much for contacting me.

Please post your responses and follow-up messages to me on this in the comments section below.


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Steve Rhode

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