I've posted about my problem, previously, in this forum and hope this question is in the proper spot, as well.

Basically, our 2nd is/was through Wells Fargo. For the record, it was one of their 'Smart' loans; interest only. We contacted Wells and our 1st (Morequity) back in December for modification. Morequity honored the request but Wells thought we made too much money. (HA) Went delinquent on the Wells but did make a payment back in January with the intent of trying to get back on track. Unfortunately, that did not occur.

They have now charged off our HELOC (it was last month, sometime) but we haven't heard another word from them. I don't know what I should do. Call them?? Try to make arrangements? Do I need an attorney [that we can't afford]? I'm at a loss. I know there are 'shoulds' and 'shouldn'ts' when dealing with this stuff and don't want to screw anything up.

Still prayin' for all of those looking for jobs to find one -- ME, included!!! <-- yeah, I know, lame at best.

~gwenny

Maybe write to them and ask if they can reopen it and make payment arrangements. I'm sure they can put a lien on the house and will probably next year from them in the form of a summons or something. I dont know exactly how the process works but wouldn't hurt to try and make payment arrangements?...

Thank you for your input. I agree that that sounds like a solid plan.

I have a first mortgage of $200,000 and a second of $50,000 here's what my attorney told me. She said if you stop paying the second they will charge it off. Once they charge it off as bad debt the lien becomes invalid. Now they can still try to get the debt through collections but you state has a statue of limitations which in my state is 4 years. As long as you dont say you will make payments the debt will go away after the statue is up. If by chance they try for a judgement I would say this judgements are fairly easy to get removed from you credit report. Hope this helps a little

My second is in arrears right now and the mortgage company themselves told me they don't usually foreclose on seconds, but rather charge them off. The purchaser isn't going to foreclose because they're second in line and they know that most likely they'll get nothing. Rather, they'd be very "optimistic" in helping you stay in your home through decent payment plan, reduced interest, etc., or flat out settlement, if that were the route you'd take. Ignoring it for 4 years really isn't an option as with such a large debt, they will, no doubt, obtain a judgment in which case, according to your state, it can remain in effect up to 20 years and then even be renewable. Getting it off your credit report would be the least of your worries. The judgment (again, depending on your state laws) would attach as a lien to the home.

I didn't read the whole thing, but I've been waiting for it - there is news coming out today regarding second mortgages. Hopefully this might lend some help.

Thank you all for your input. Evidently, I still don't have the complete hang of these boards as I didn't sign up to receive an email when someone replied.

What was the news on 2nds that came out at the end of April? I can't specifically find anything.

Thanks so much ...
gwenny

There really hasn't been much news beyond the initial announcement, but here it is .....

http://www.treasury.gov/press/releases/tg108.htm

Thank you! Missed that one, altogether.

My eyes kind of glazed over while reading that, however, I've been studying Algebra for 4.5hrs, now, too.

I followed the Case Example link at the bottom of the page and found Family B's situation sounds much like ours. Except, of course, THEIR 2nd mtg co had not charged them off. I wonder if I stand any chance, of working out such a deal with Wells Fargo?? Mind you, I would likely drag my feet till I've either got a permanent job or school is back in session so that I stand a chance of making some little income by substituting, again.

Has anyone heard of any stories where something like this was arranged?

Please, I hope someone sees this and can offer advice. I have just received a letter from an attorney in my state regarding the charged-off HELOC. The date of the letter is October 13th so my time is ticking.

The dollar amount is nearly $90k. There's just now why we can pay that without going back to a 30 year loan which isn't going to happen. We do owe it; Wells Fargo just didn't want to work with us. Upon reading these boards, I find that we seem to have had the same problem with WF as many others, here.

I suppose the answer is in front of my face, but, do we run to an attorney? Or do I begin with a letter similar to the one I sent to another attorney's office regarding a small medical debt ~ which ended up being immediately deemed 'not my responsibility,' according to the attorney's office? Of course, I wouled remove all reference to HIPPAA. This is the text of that letter:

Re: Acct # xx-xxxxxx

To Whom It May Concern:

This letter is being sent to you in response to your attached letter. This is not a refusal to pay, but a notice that your claim is disputed.

Under the Fair Debt Collections Practices Act (FDCPA), I have the right to request validation of the debt you say I owe you. I am requesting proof that I am indeed the party you are asking to pay this debt, and there is some contractual obligation which is binding on me to pay this debt.

Please attach copies of:
• Agreement with your client that grants you the authority to collect on this alleged debt or proof of acquisition by purchase or assignment.
• Agreement that bears the signature of the alleged debtor wherein he or she agreed to pay the creditor and as this is a medical account a copy of any HIPAA authorization.

Please also be advised that this letter is not only a formal dispute, but a request that you cease and desist any and all collection activities, including reporting of; or verifying of this account on my credit reports.

Your receipt of this letter will be considered as having granted consent to the taping of any and all telephone calls to me at my home or business by you or your agents or assigns.

I require compliance with the terms and conditions of this letter within 30 days or a complete withdrawal, in writing, of any claim.

In the event of noncompliance, I reserve the right to file charges and/or complaints with appropriate County, State & Federal authorities, as well as the BBB and State Bar associations for violations of the FDCPA, FCRA, and Federal and State statutes on fraudulent extortion and illegal collection activities on any account subject to the HIPAA and West Virginia medical privacy rules.

I also hereby reserve my right to take private civil action against you to recover damages.

This all feels like so much more than I can bear!