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How does HELOC affect "jingle mail".

Posted on: 14th Aug, 2009 02:33 pm
My primary home is in Calif, and I'm just barely managing to stay afloat (which looks more and more doubtful each month).

I have a 2nd house in Las Vegas, that I'm considering walking away from.
I think it would appraise for $155,000.
I have a mortgage balance of $155,000.
I also have a HELOC for $90,000.

I'm not concerned about what it will do to my credit score.

1. Who should I try to do a Deed in Lieu with?
2. If they don't cooperate, and I just mail the keys to them, what can they come after me for? i.e. Am I still liable for the HELOC?
Have you called yoru bank and asked for some solution

Like loan modification etc?
Posted on: 14th Aug, 2009 08:04 pm
mortgagefit

You need to contact your lnder if you want to do a deed in lieu

If walk away from the property, the lender will foreclose the property and will hold you liable for difference inclduign the HELCO

That may be sent to a collection agency and you will need to pay them

Good luck and feel free to ask
Posted on: 14th Aug, 2009 10:01 pm
hi mortgagefit,

you need to contact the loss mitigation department of your mortgage company regarding the deed in lieu (dil). if you do a dil on your second home, the lender cannot come after your primary residence. but you will still be responsible for the heloc. they can sue you for non-payment and can get a judgment against you. they can even garnish your wages. however, if there is any difference for the sale of the house, you negotiate with the lender and ask them to accept a short payoff.
Posted on: 14th Aug, 2009 11:52 pm
Just contact lemnder and ask for mortgage modification.
Dissuss with lender
Posted on: 15th Aug, 2009 05:36 am
gee....has anyone suggested you contact your lender?
Posted on: 15th Aug, 2009 06:49 am
sorry...i meant to ask what's this reference to "jingle mail"???
Posted on: 15th Aug, 2009 06:49 am
I am wondering about "jingle mail" too.
Posted on: 15th Aug, 2009 09:04 am
"Jingle Mail" is what the media is calling it when you just mail your keys back to the lender.

I was asking which lender do I contact, the 1st mortgage or the HELOC lender.
Posted on: 16th Aug, 2009 12:54 pm
Interesting....and thanks for the education. Never heard of that before.

Now that we have that out of the way, I will answer your question.

Make two sets of keys and mail one set to your primary lender and another to the bank that is holding your HELOC. Keep in mind that this strategy does not mean you are no longer obligated to pay this debt.
Posted on: 16th Aug, 2009 01:15 pm
I was under the impression that mortgage lenders could not go after me for any debt that was secured by the house. All they can do is take the house back.
Posted on: 16th Aug, 2009 01:22 pm
Thats not true

If they can sell the house for the amount you still owe,then they will not come after you.

But in situations like this, the house will be sold for less then the market value and lender can come after you for the difference
Posted on: 16th Aug, 2009 03:51 pm
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