Bank Of America 2nd Lien HELOC has given no sign of wanting to foreclose
First Lien for $860,000: GMAC (successfully modified (non-govt qual) and current)
Second Lien $200,000: BAC (10% interest only HELOC)
Property is worth $920,000 tops for private sale(likely $850,000 if sold after/through foreclosure)
Reduction of income forces my position.
No matter what I tell Bank of America, even DARING them to foreclose, we are at a stand still and have been for over 26 months. I have offered $60,000 in cash if they will match the $60,000 in form of principle reduction and reduce the interest rate, and change from interest only to interest+principle loan. There answer since day one is "sir, we do not modify HELOC loans."
This is a "Purchase Money," Non-Recourse, one action loan (loan used to purchase in CA)
Questions:
1. The offer I have made seems reasonable, and OVER estimates their position and best hope of retrieval of their investment. Is the answer on why they are not accepting this offer in a heartbeat simply because they are trying to "extend and pretend?"
2. I would think my offers are best suited for the Office of the President. My offers are simply ignored by this office at BAC. Am I just completely missing the boat on who I should be speaking with about my offer?
3. There appears to be a statute of limitations in CA of 4 years. Am I correct to assume that BAC knows this and they WILL make their move before the statute of limitations runs out?
4. Does anyone have advice that would help me "slap some sense" into BAC?
5. Where does this end? What is the final card that will likely be dealt in this situation?
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Comments
I am going through Short Sale negotiations and have a buyer at 100,000. My first has agreed to take 97,000 of the sale, the 2nd is a BofA Heloc for 60,000, who gets the other 3.
After my Realtor acted as the go between, for me and the BofA negotiator, she (BofA) insisted and I eventually agreed to a 20% Promissory Note over 7 years. A few days later, she informs my Realtor that 'the investor' doesn't agree. The only option before me now is to agree to the short sale, them getting 3,000 and paying them an extra 600.00 due to them wanting more than the 3 and the 1st not willing to reduce their share, or pull out completely.
I have a disability (MS) and my hardship letter explains that I cannot maintain my house and swimming pool so need a smaller abode, so my reasoning is not completely financial. Are bankers/investors ALL as heartless as we suspect?
Is there any way to find out who the investor is, so I can attempt to negotiate with them?
After all, we are all losers, at one point (2006) I had 170,000 equity in the house, so my loss, created by them, is greater than theirs, as is every home owners.
It appears that after the short sale, BofA, the investor or a collection agency will come after me for the balance. What does anybody think it will likely turn out. I have felt that if we got as far as a judge and he could see my disability, I explained my willingness to the Promissory Note negotiated and agreed upon by BofA, he would at least reduce the deficiency. . Am I being ridiculous??
Thanks....
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