Posted on: 30th Nov, 2008 11:06 pm
after three months of unemployment and being on the market, i am stuck. i am unemployed and trying to start my own business. i have a 15 year at a great interest rate 5% 242k and a second heloc at 7.65% at 29k. they are both with citigroup, but one is with citimortgage and the other with another division in the bank. i have excellent credit and would like to just get rid of the place. the payment is too high and i do not want to lose my credit so i have considered the deed in lieu of foreclosure. but i do not want to pay the 30k heloc, since they are with the same bank, do you think they would let me negotiate the deed in lieu with the two loans?
i live alone, so this only affects me and i am 40, i have money in my 401k, but i do not want to open up this to the bank because it is how i am going to make it until i get another job. can i protect it through the negotiation. should i even reveal the amount to them, i may have already when i qualified, but does the bank have the right to try to get this money? if i take it out is it not protected then?
thanks
i live alone, so this only affects me and i am 40, i have money in my 401k, but i do not want to open up this to the bank because it is how i am going to make it until i get another job. can i protect it through the negotiation. should i even reveal the amount to them, i may have already when i qualified, but does the bank have the right to try to get this money? if i take it out is it not protected then?
thanks
Hi heathershouse,
The lender can consider a deed in lieu but whether he will negotiate on the 30K HELOC will be totally the lender's discretion. The lender can even charge it off to a collection agency who will collect it from you. To know more about deed in lieu, you can check the following link:
http://www.mortgagefit.com/deed-lieu.html
Taking out money from your 401k plan to pay off the debts is not a good idea in my opinion. Moreover as far as I know, lender will not be able to place lien on it.
Thanks
The lender can consider a deed in lieu but whether he will negotiate on the 30K HELOC will be totally the lender's discretion. The lender can even charge it off to a collection agency who will collect it from you. To know more about deed in lieu, you can check the following link:
http://www.mortgagefit.com/deed-lieu.html
Taking out money from your 401k plan to pay off the debts is not a good idea in my opinion. Moreover as far as I know, lender will not be able to place lien on it.
Thanks