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What happens after I negotiate and pay settlement on my HELOC?

Posted on: 30th Aug, 2010 10:37 pm
my first mortgage is with bofa/countrywide and i'm current. i owe 339k and the home is worth 315k. i have a second with chase $50k that i'm also current on, but being that my house is underwater i was unable to refinance my mortgage with bofa. they said that i needed to pay off my second or come up with some money to be able to refinance. since, i was unable to do neither, i contacted chase, wrote a hardship letter, and provided proof of funds. i offered them 5% and they settled at 10%. i was shocked they moved so quickly after i faxed in my information.

my question is, what sort of impact will this have on my credit score? i am current on all my accounts and had/have excellent credit score prior to this settlement. i only resorted to this because i was told that i could refinance after my second is paid off.

also, what are the tax implications?
Hi inbox_resp,


"what sort of impact will this have on my credit score?"

It won't impact negatively on your credit report but if you are a serial refinancer then surely all the inquiries will pile up and it may impact negatively.

As far as current situation is concerned it won't make any difference to your credit score.

DIPA
Posted on: 30th Aug, 2010 11:58 pm
Thank you. The second part of my question was: What are the tax implications?
Posted on: 31st Aug, 2010 10:07 pm
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