Preforeclosure Home Equity Line of Credit Negotiation

[Reuben Royal]

I have a property under contract, my attorney discovered a home equity line of credit for $30,000 on the property with an additional $10,000 in unpaid fees. This property goes to auction on the 22nd which is Tuesday. With this additional debt added, it could break the deal, and the seller will let the property go to auction. 

My question is this:

In negotiating with this lender for the second mortgage, how likely am I to be successful to work out a deal before the auction date? If it is possible to do this, what is a reasonable amount to offer? I've heard that this junior mortgage will get wiped out and that they will then receive nothing if that happens when it goes to auction.

I would greatly appreciate any experts advice and guidance on this.

[Ron S.]

Originally posted by @Jason D.:

@Ron S. all good points. Sometimes creditors will take what's in front of them over what could be. They are in foreclosure for a reason, so why not give it a try?

 I get your point, and it's a valid point. It's just that today, it doesn't work much any longer. 2012? 2014? All day, every day. 2018? Not so much.