I have recently got a quit claim to a property from an estate that is in probate. The agreement is that I pay the first mortgage and the HELOC. My question is if anyone here has ever negotiated a reduced payoff of the HELOC in a situation like this for a loan that is in the deceased parties name? I was curious if an all-cash offer would be appealing to them. It is with Wells Fargo. Any feedback or thoughts is greatly appreciated.
Wells Fargo is not going to move one bit below FMV, so if your in a declining market and this property is way upside down and the 1st TD holder is being forced to reduce their note then Wells Fargo may consider taking a minor payment for the second and releasing it, however if Wells Fargo can actually recover 50% of a $100k HELOC by forcing the retail sale of the property they will do so!
Wells Fargo is not going to allow an investor to make a profit at the expense of the HELOC note! A huge bank like Wells Fargo has absolutely no motivation for a little cash offer on a single obscur property that when sold will net them more than your offer!
I bank with Wells Fargo among other banks and have a number of loans through them including Heloc’s and they have absolutely zero interest in anything that benefits someone else and shorts there note! You will end up paying Wells Fargo every dime up to FMV or to the debt owed against the loan, which ever net’s them more money at closing!