I am currently 4 months behind on my mortgage and my heloc. I have worked out a modification with my primary lender that I can live with, and I continue to work out a settlement offer with my heloc throuogh chase bank. what would happen if I just paid my first mortgage ? could the heloc bank attach to the home?
I can’t think of any reason why the home equity line of credit lender could not sue you for default and place a lien against the home, unless….
You really might want to consider a Chapter 13 bankruptcy. In the bankruptcy you’d keep your house, make the new modified mortgage payment and if your home was worth less than the total owed with the HELOC, the HELOC might be able to be reduced to fit in the value of your home and more importantly, your income.
I strongly urge you to call a few local bankruptcy attorneys and find one that you feel comfortable with so you can go in and meet with them face-to-face to discuss your situation. Most bankruptcy attorneys offer a free bankruptcy consultation appointment.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.