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Exhausted all options except deed in lieu but have heloc

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Guest	Posted: Wed Sep 29, 2010 2:05 pm    Post subject: Exhausted all options except deed in lieu but have heloc Like 0 Dislike 0 We are current with our house payment but our house has lost value and we cannot refinance. We are not able to continue to make payments on time much longer and have been turned down for Loan Modification. We have always had perfect credit and still do, to date.We have attempted for 2 years to sell the house and no one is buying it. We do not wish to stay in the property. Our mortgage company offered us a DIL option because of debt ratio and expenses are about the exact same. They said the HELOC (with a local credit union)is our problem (we are in Michigan). I am not able to return to work. In the last 6 months I have gone through breast cancer and our daughter was diagnosed with Type 1 diabetes which is a new added expense. If we take the deed in lieu for the first mortgage and have to pay on the second mortgage we are going to be right back in the same financial disaster as rent + bad credit + $500-600/month on the HELOC. Is there any legal way out of the HELOC? HELP, need advice.
adonis Joined: 22 Oct 2005 Posts: 10574 Location: ALASKA 1090.82 Dollars($)	Posted: Wed Sep 29, 2010 9:20 pm    Post subject: Like 0 Dislike 0 Welcome Guest, If the first lender accepts your deed in lieu of foreclosure, you won't have to pay the balance dues resulting from the property sale. However, you'll be liable for paying the second mortgage to the credit union in full. There are chances that the credit union may charge off the loan and may assign it to a collection agency if you cannot pay the dues. _________________ Procrastination is the enemy of your financial success

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