[WSBAPT] PC Question re HELOC

[Inge Fordham]

Colleagues,

A PC contacted me regarding real property she inherited via her father’s revocable living trust.  The property is encumbered by a HELOC that was taken out by the decedent prior to death.  There is equity in the property.  No other financial encumbrances.  No probate.  Until recently, she was making payments on the HELOC.  She ceased making payments because she thought it might trigger some offer from the lender to settle the debt.  PC wants to know whether she can negotiate with the lender (Wells Fargo) to settle the HELOC for less than the total payoff amount.  My initial thought is that Wells Fargo has little incentive to accept less than the full payoff amount because it has a secured interest in the property and the estate is fully solvent.  In my experience, larger institutions are less likely to negotiate.  Does anyone have any experience with negotiating with a lender to settle a HELOC for less than the total payoff amount?

Thank you,


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Inge A. Fordham | Attorney
Fordham Law, PLLC
3218 Sixth Avenue | Tacoma, WA 98406
Office: (253) 348-2657 | Mobile: (206) 778-3131
www.fordhamlegal.com<http://www.fordhamlegal.com>

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