Can they do this?

[keepmine]

WHat is the home worth and, how much is owed on the 1st mortgage and, the heloc?

[syn]

Well, when the bank appraised it for the loan it was over $400,000. If my parents sold it when the market got better they could probably get $350,000. They currently owe $65,000 on the mortgage and the equity loan is $150,000.

[StartingOver08]

Well, when the bank appraised it for the loan it was over $400,000. If my parents sold it when the market got better they could probably get $350,000. They currently owe $65,000 on the mortgage and the equity loan is $150,000.

Looks like your parents have lots of equity in their home - or did have equity. The bank wants the business loan moved to the HELOC so he will continue to pay on it - that is what they are doing. They know he probably wants to keep his home.

What did your Dad's attorney say at Tuesday's appt about moving the loan to the HELOC?

IMO, I think it is a terrible idea - he should leave the business loan where it is.

[syn]

Looks like your parents have lots of equity in their home - or did have equity. The bank wants the business loan moved to the HELOC so he will continue to pay on it - that is what they are doing. They know he probably wants to keep his home.

What did your Dad's attorney say at Tuesday's appt about moving the loan to the HELOC?

IMO, I think it is a terrible idea - he should leave the business loan where it is.

That's exactly right and you're right he wants to keep the house...for now. They aren't meeting till this Tuesday, 2/24. However, my dad spoke to his attorney on the phone yesterday, he had called saying he wanted a list of everything my dad has at the business from office furniture to equipment and to put a value on each item. Is that a standard thing a court wants? I don't know.

Anyways, my dad mentioned to him about the bank's idea and his attorney said it was a bad idea but they didn't get into a discussion about it until they meet.

[StartingOver08]

Yes, the list of business assets is a normal request. After all the business is an asset of your fathers and the assets of the business therefore are your dad's assets too.

Remember - make sure the values are 'garage sale' or 'auction sale' type of values too.

[syn]

Okay, thanks.

So what do you think my dad's option could be if he included the loan into bk and still had the delinquent equity loan? Like would the bank still work with him or would his lawyer have to get involved?

[syn]

He met with his lawyer and he didn't give him much of an answer. He wants to read the equity loan contract first. He actually wants my dad to file chapter 7 now which means they would have to take the deal in order to keep the house. All though that also means my dad would go out of business. Actually, any option his lawyer gave would make him go out of business. He said there was something he could try, like convince the court he could stay in business but I didn't understand what he was trying to say.