All Forum Posts by: Sheila S.

Both husband and I are on the loan...no options there. We each have student loans...his for a bachelors, mine for my masters.

Don't really have any issue with paying $500-600 a month on a note as long as it means we're out from under the house. As for the other debt I have been able to work out interest-free payment arrangements and those numbers are going down. In a few years those will be paid off, but the HELOC will be called in and those payments will have a sizable increase. The move back east is definite and we won't be able to afford rent, AZ mortgage, and the HELOC. If we have to foreclose we will but looking at every other option before that. Our ideal situation is that the revolving debt is paid off and we just have to worry about rent and paying off a note on the HELOC.

My main question still stands...is it possible to get the HELOC lender to release the lien with a long-term promissory note? Just want to know that it isn't unheard of.

As for maintaining our lifestyle by using the HELOC really that just meant paying regular bills, paying off debt, managing car payments, etc. as well as dealing with the added expense of an extra person in the house. We do not travel, buy things for the house, etc. Had we had any indication that our home value would plummet we would have figured something else. Unfortunately, we were young first time homebuyers with no experience in this field. I know that isn't the fault of the lenders but I am trying to do the right thing before I have to choose to let it all go.

I am starting with an attorney who is also a realtor. Her entire practice is devoted to short sales. This is a link to her info if anyone has some feedback on her qualifications.

http://offeringshortsalesolutions.com/about/suzanne

Currently we are only paying interest on the HELOC and student loans are in forebearance. As those payments increase our risk of foreclosure will be greater which is what I want to stress to the lenders. Hopefully they will choose to let me out now knowing I'll make payments instead of facing foreclosure later on. At that point I'll only be looking out for myself, even if that means BK.

Have promissory notes in large amounts for an extended period been done before?

No, unfortunately it was used for personal reasons. We lost 50,000/year in income when I chose to stay home with our newborn daughter so that HELOC was used for living expenses. Our home value had jumped to over 200,000 so we figured at some point we could sell and at least break even. Then the value of our house fell even below the initial purchase price which was low.

There will be tax implications which is why we are willing to pay what we owe.

I have a meeting with an attorney/real estate agent next week but am looking for some feedback in the meantime...wondering if this scenario could work:

We own a home in AZ...owe about $113000 on the mortgage through US Bank. House is probably worth 75-80,000. There is PMI. We have a HELOC with BOA for about 99,000.

Our plan is to relocate to VA this summer to rent a house from family so that we can get the rest of our debt in order. Could rent our AZ house as a last resort but in the next few years that will become unmanageable (HELOC payment will increase to pay off and we can only request forebearance on student loans for so long).

I'm hoping that the 1st lien would go fairly smoothly even with the PMI since we don't owe a ridiculous amount. I would even be willing to contribute to the PMI loss over a period of time.

As for the HELOC I am wondering about the possibility of turning that into an unsecured debt to pay off interest free over 10-15 years with a promissory note (they can even hang the threat of a deficiency judgment over our heads if we default on that note). If they wrote it off they get nothing and then we have a tax issue to deal with. I am okay with honoring the debt we are obligated to pay...just would like to restructure so we can get out of the house. At least both parties benefit.

Does this scenario sound crazy or think it might work? Does anyone go into negotiations willing to pay their share?