Best strategy to pay off heloc lien

[azpt22]

Just met with our attorney and he advised ch 7. We have our 1st mortgage with wells fargo for $144K and a HELOC for $113K with principal bank. Our attorney advised we reaffirm the first but not the second..... apparently in Az they can't come after you. Our house is worth about $200k - $210k. my question is.... can we buy out the lien from principal bank?

[Meatstick]

I could be mistaken but since you have a HELOC with an outstanding balance they can and probably will come after you. Since you are filing a 7 that HELOC balance will be wiped out but the lein will stay. After discharge I would try and negotiate that HELOC down. Just rememeber that by reaffirming the first when/if you ever sell the house that the lein will need to be satisfied either by cash or proceeds from the sale.

[CCsAreEvil]

Just rememeber that by reaffirming the first when/if you ever sell the house that the lein will need to be satisfied either by cash or proceeds from the sale.

That 1st lien/mortgage will need to be satisfied "regardless" if you reaffirm or not if you plan to sell it in the future.