[WSBAPT] PC Question re HELOC

[Inge Fordham]

You are correct.  That was my thought as well.  I told her as much but agreed to inquire whether any of my colleagues have had success in this situation.

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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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From: <wsbapt-bounces at lists.wsbarppt.com> on behalf of "Jeff at bellanddavispllc.com" <Jeff at bellanddavispllc.com>
Reply-To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Date: Wednesday, December 14, 2022 at 9:45 AM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] PC Question re HELOC

I have never had a lender compromise their debt in the situation you face.  I gather there is no other debt against the property and your client does not live there.  The lender has no motivation to compromise and will get 100% of their loan, with foreclosure costs, if forced to collect.

Jeff

W. Jeff Davis
BELL & DAVIS PLLC
Attorneys at Law
P.O. Box 510
720 E. Washington Street, Suite 105
Sequim WA 98382
Phone: (360) 683.1129
Fax: (360) 683.1258
email: jeff at bellanddavispllc.com<mailto:jeff at bellanddavispllc.com>
www.bellanddavispllc.com<http://www.bellanddavispllc.com/>

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Inge Fordham
Sent: Wednesday, December 14, 2022 9:28 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] PC Question re HELOC

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>

Confidential Communication: This email is sent to a recipient on behalf of an attorney/law firm, and is information intended exclusively for the individual, entity or company to which it is sent.  This communication may contain proprietary, privileged or confidential information or may otherwise be legally exempt from disclosure other than to the intended recipient.  If you are not the named addressee, you are not authorized to read, print, retain, copy or otherwise disseminate this message or any part of it.  If you have received this email in error, please notify the sender immediately by email or other communication and delete all copies of the message.
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