Update: Loan modification AND Credit Card Settlement.

[day2day]

Hi All. Here is an update to my situation, which is now resolved to the best I could resolve it.

Info on me: Never been late on ANY payments, mortgage or credit cards or anything. Still have a great job.

Situation: Transferred HELOC debt to the tune of 43k onto a B of A credit card at 0% for 9 months to pay off extra principal. Following this period I was going to transfer it back to my BARELY used HELOC, and continue paying it off.

When it came time to transfer it back, my HELOC company froze my HELOC, and would not allow the 43k to be returned(using seriously bogus numbers and new guidelines.) I than tried to renegotiate my soon to be new interest rate with the CC company. They called me a credit risk and froze my account giving me my only option as settlement(I HAD NEVER MISSED A PAYMENT IN 15 years, and RARELY ran a balance, but had a 46k credit line.)

So after some thought I chose to settle rather than spread that house debt to other cards.

Settlement was 15k on 43k of debt.

In the meantime I called loss mitigation of my mortgage company and was persistent enough to get them to actually modify my mortgage to the tune of 4.25 percent for 5 years, and a lock in following that for the remainder of the loan.

It was hard, stressful, and not easy to do...but I got it done.

They say they are willing to help but it takes ALOT of work.

[ready2puke]

Congrats to you for getting the deals done, but you do know your going to get a hit to the tune of 28k in taxes right? BofA will be sending you a 1099....So start saving your pennies. Its still better than paying the whole amount

[day2day]

Yep...I know.

So the deal is the final payment will not be until 2009, so it will give me time to come up with a strategy to deal with the extra taxable charge.

Yes it is far better than having to pay 43k. The thing that amazes me is all I asked them for was to extend my 0% out a couple of months so I could come up with a gameplan for the 43k remaining on the card. Instead she got mad at me, refused to consider that as an option, than froze my account.

[StartingOver08]

You did a fantastic job of negotiating! Looks like the lenders are all playing "hot potatoe" with the balances now...credit line reductions, HELOC reductions, frozen accounts.....

[ALICIA21]

Hi All. Here is an update to my situation, which is now resolved to the best I could resolve it.

Info on me: Never been late on ANY payments, mortgage or credit cards or anything. Still have a great job.

Situation: Transferred HELOC debt to the tune of 43k onto a B of A credit card at 0% for 9 months to pay off extra principal. Following this period I was going to transfer it back to my BARELY used HELOC, and continue paying it off.

When it came time to transfer it back, my HELOC company froze my HELOC, and would not allow the 43k to be returned(using seriously bogus numbers and new guidelines.) I than tried to renegotiate my soon to be new interest rate with the CC company. They called me a credit risk and froze my account giving me my only option as settlement(I HAD NEVER MISSED A PAYMENT IN 15 years, and RARELY ran a balance, but had a 46k credit line.)

So after some thought I chose to settle rather than spread that house debt to other cards.

Settlement was 15k on 43k of debt.

In the meantime I called loss mitigation of my mortgage company and was persistent enough to get them to actually modify my mortgage to the tune of 4.25 percent for 5 years, and a lock in following that for the remainder of the loan.

It was hard, stressful, and not easy to do...but I got it done.

They say they are willing to help but it takes ALOT of work.

I really enjoyed this. where can I find more info about this. email me..