Foreclosure in Los Angeles>Question Details

Packard, Home Owner in California

I received a Notice of Sale letter and worrying about my HELOC loan. I have both 1st and HELOC loans with Wells Fargo.

Asked by Packard, California Sat Oct 6, 2012

I am still current on HELOC payments. I heard if you have both 1st and HELOC with the same bank at the time of a foreclosure sale, both loans will be wiped out but Wells Fargo also can sell HELOC to collections agency pennies on the dollar just before the sale. Is this true?

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Meredith McKenzie’s answer
Dear Packard:

You've just received a 20-day Notice for a Trustee Sale so it is important that you act quickly. Your first mortgage and your HELOC with Wells Fargo are managed by different departments within the bank, so you cannot assume that the Bank is internally coordinating their actions on these notes. Because you state that you are current on your HELOC payments, I am presuming that it's your first mortgage that is in default. Without knowing all the facts in your situation, it is impossible to give you reliable advice due to the many complex factors involved. What I can tell you is that even if you have options available to you, such as a loan modification or short sale, none of these can be completed and achieved before your sales date. In the short term, you need expert advice that will help you negotiate a postponement of this sale while other remedies are being explored.

I urgently recommend that you seek out legal advice immediately. If you cannot afford a private attorney, organizations like Public Counsel and Bet Tzedek can provide qualified counsel to you at a reduced rate.


Meredith McKenzie
DRE License #01142186
Podley Properties
897 Granite Place
Pasadena, CA 91101

626-344-9755 - Cell
626-243-4330 - Ofc
2 votes Thank Flag Link Sun Oct 7, 2012
Hello Packard,

You do have options that can certainly save your home if you want to stay in your home.
I advise you to check out the following programs available to homeowners under the HAMP, HARP and DOJ programs expanded criteria.

After you have reviewed the programs, go ahead and give me a call so I can let you know how to prepare your package to submit to Wells Fargo.

Best regards,
Jane La Trace
888.803.1740 *118
0 votes Thank Flag Link Tue Oct 9, 2012
Hi Packard:

Give me a call and I can pull the property info and take a look. If your 2nd is a HELOC, the bank may come after you for the amount owed if they foreclose.

If you do a short sale, which you would need to move quickly, the bank would most likely accept the approved short sale on the 2nd as payment in full, however, they can still 1099 you for any balance charged off.

There are many variables to this as well.

Give me a call to discuss.

All the best,

Kat Becker, Realtor
Prudential California Realty
(323) 819-4760
0 votes Thank Flag Link Mon Oct 8, 2012
Typically, if the First Lender forecloses the second gets wiped out. However, this is your first Notice, so go to talk to the Bank. You can still save your home and your credit rating. There many programs to help you.
0 votes Thank Flag Link Sun Oct 7, 2012
Hi Packard,
The best thing to do is get an agent that is both experienced in your neighborhood and in Short Sales. You want an agent that will treat you like it is a regular sale, with full respect. My web page has tons of information for you under ShortSale/Foreclosure click on LIST WITH US.

A short sale does not cost you a dime. The banks pay the Realtor commissions, and you must have a Real Estate License to do a Short Sale.

Call for a free consultation,
Madelaine Kolisnyk, Realtor
0 votes Thank Flag Link Sun Oct 7, 2012
you are asking a very complex question with many variables... can helocs be settled? Yes, sometimes.

How this affects you? can you modify? does it make sense to try? have you tried? wha other options do you have? what other debt do you have?

Please start by reading my website on these issues... then reach out to me or any EXPERIENCED agent in your area...
0 votes Thank Flag Link Sun Oct 7, 2012
Best for you to call an experienced agent in YOUR area.
What you described can happen, have you made contact with your lender to discuss options?

Good luck
0 votes Thank Flag Link Sun Oct 7, 2012
Have you considered a short sale?
0 votes Thank Flag Link Sun Oct 7, 2012
SERGEY FEDNOV *** 424-777-9377, Real Estate Pro in Beverly Hills, CA
It is possible to have your HELOC completely wipe out with principle forgiveness of your home equity line of credit.

I'll be more than happy to explain all your options and provide you a free consultation just contact me direct!

Hope this info will help you!  

Please contact me anytime!  

Free Consultation 424-777-9377  

Help with any Real Estate Transaction Buy & Sell!  

Thank you for your time.  

Should you have any questions - please feel free to call me Toll Free: 1-855-TRUST-55 (1-855-878-7855)  ext. 777.  

Sergey Fednov  
President - Realtor  
- Trust Sale Realty -  
Residential & Commercial Real Estate  
Toll Free: 1-855-TRUST-55  
Toll Free: 1-855-878-7855
Phone: 424-777-9377  
Fax: 310-356-4925 
0 votes Thank Flag Link Sun Oct 7, 2012
It is possible. I have seen this many times. You can contact me now and we can discuss your options. I head up our distress properties division here at Coldwell Banker, so I am highly experienced and can guide you professionally and expertly. Please call my Cell at your convenience. 310-488-9826. Thank you.
0 votes Thank Flag Link Sun Oct 7, 2012
When is your sale date?

Give me a call Sunday morning, or in the next few minutes if you want.

We can discuss your situation and see what can be done.

My number is 310-647-7785

Nick Socha
C21 Amber
DRE #01831474
0 votes Thank Flag Link Sat Oct 6, 2012
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