Forgiving home equity loan

[rooster0330]

A friend of mine stopped paying both her mortgage and home equity loan 2 years ago. She told me yesterday that a couple of months ago the bank sent her a letter and said they are forgiving the home equity loan which by the way is/was for $200,000. Her first mortgage is for over $400,000.

Has anyone ever heard of this, the bank just forgetting about the loan???

[LadyInTheRed]

It is probably part of the National Mortgage Settlement. For info, go to http://www.nationalmortgagesettlement.com/about or your State Attorney General website.

[knitty]

A friend of mine stopped paying both her mortgage and home equity loan 2 years ago. She told me yesterday that a couple of months ago the bank sent her a letter and said they are forgiving the home equity loan which by the way is/was for $200,000. Her first mortgage is for over $400,000.

Has anyone ever heard of this, the bank just forgetting about the loan???

It happened to my coworker...she had struggled for years to get it paid down and she got the same letter...much smaller amount however