HELOC w/ variable APR durring BK

[forgotten]

I have a HELOC with a variable APR I am paying outside the plan.
They filed a claim on my case and wrote in "<balance> @ 3.24% APR".

By any chance does that mean by APR will be locked in at 3.24% for the course of the plan, or can it still adjust per the terms of the original note?

[justbroke]

I have a HELOC with a variable APR I am paying outside the plan. They filed a claim on my case and wrote in "<balance> @ 3.24% APR".

By any chance does that mean by APR will be locked in at 3.24% for the course of the plan, or can it still adjust per the terms of the original note?

If your plan gets confirmed at 3.24% APR and doesn't indicate an adjustable rate... then you would have a basis for fighting any change to the APR.

My lender on my primary residence filed an objection to confirmation because I didn't put "ARM" on the Plan. I had put "X.XX% APR" and they were not happy about it.

I would see if your plan survives confirmation with it as "3.24% APR". I'm thinking that they would probably complain.

If this is one of those DiTech (GMAC) loans where it adjusts, monthly... that would be too difficult for a Chapter 13 Plan to deal with. You may want to try to get it fixed anyhow.

[overspent]

HELOC rate

I also have a HELOC at LIBOR + 8.75%. Is there anyway I can reduce it to a fixed rate?

Thanks.

[justbroke]

I also have a HELOC at LIBOR + 8.75%. Is there anyway I can reduce it to a fixed rate?

Not unless the lender agrees, and that is usually done by modification... not through Chapter 13 Confirmation. Home lenders are very particular about what's known as their "anti-modification" rights. They are specifically protected from having anything touch concerning their mortgage/note.

[forgotten]

I got the story on the HELOC from the lender. They had sent a letter to my laywer saying to have me call them if I wanted to receieve statements in the mail.

While I was on the phone I asked if my payment amount would ever change because of the variable interest rate (without mentioning anything about my plan or the claim). I was told no, they froze the interest rate on my account at 3.24% until the end of the bankruptcy (was variable month-to-month). She said they do that to ensure you will be able to make your payments until the end of your 13.

So... a lender that did something smart... how strange!

[catleg]

I'm wondering if it's possible to convert from an interest-only HELOC to one that includes principal payments over the remaining term of the loan, so I can schedule them as chapter 13 secured debt payments. Anyone? Anyone? Bueller?

[justbroke]

So... a lender that did something smart... how strange!

I am utterly impressed.

[justbroke]

I'm wondering if it's possible to convert from an interest-only HELOC to one that includes principal payments over the remaining term of the loan, so I can schedule them as chapter 13 secured debt payments. Anyone? Anyone? Bueller?

That would be up to the Bank. You can't force them via the Chapter 13 Plan.

[zeezee]

I got the story on the HELOC from the lender. They had sent a letter to my laywer saying to have me call them if I wanted to receieve statements in the mail.

While I was on the phone I asked if my payment amount would ever change because of the variable interest rate (without mentioning anything about my plan or the claim). I was told no, they froze the interest rate on my account at 3.24% until the end of the bankruptcy (was variable month-to-month). She said they do that to ensure you will be able to make your payments until the end of your 13.

So... a lender that did something smart... how strange!

That actually happened to me with HSBC. Just before I filed I was on the last month of my 2nd mtg modification and I filed 1 day before the new regular payments were to resume, but HSBC said that my payments would remain at the modified amount for the life of my ch13! I was shocked!
Because it is paid outside my plan I was thinking it would mean a couple of extra bucks but after I told my attorney he said to continue to make the regular payment amount.

I called them and told them to take the payments off of the modification program (tax implications for me later).