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    sheezy97's Avatar
    sheezy97 Posts: 2, Reputation: 1
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    #1

    Apr 19, 2010, 08:04 PM
    Collections for a Home Equity Line of Credit
    Help needed here. My 1st mortgage is willing to modify (thanks to the gov't), however, my 2nd is a "securitized" loan (different lender) and they say they are unable to modify. The woman at the bank said if I modify my 1st, in order to keep my loans, my 2nd payment would actually increase to pay back missed payments. Or, I could let the 2nd go to charge off state and be sold to a collections agency. The collections agency would then try to settle the debt. I am seriously considering this, as my credit is already damaged. What could I expect in terms of settling with the collections agency?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Apr 19, 2010, 08:09 PM

    Since it is secured by property, most likely payment in full plus late charges, attorney fees. This is not like unsecured credit cards, they are secured by a lien on the property and have less need to settle for less
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