Wells Fargo mortgage w/ HELOC

[Joel Fraser]

Here's my scene.I have an investment property I bought in 1/07; it has a first and line of credit with Wells Fargo. 1st, I owe 185k, the second, I owe 22k. I have tried to rent it for almost a year and I can't find good tenants because the community has basically turned into gov't housing for the poor (blame the investors) also the crime is really really bad. So I contacted Wells Fargo, sent them a hardship letter and told them the situation. They said put the house up for a short sale. Six weeks ago, somebody placed a bid on the property and I sent them all the required paper work. I keep calling them but the only answer I get, "still in review". I have been current with the payments.The HELOC people called me and wanted to settle the loan of $22k for $10K and it will be marked as "settled" in the credit report. I only have 10k left so if I would pay them off, I would be left with zero cash for the people with the first mortgage so that wouldn't be fair. Why should I give 10k to the HELOC people and nothing to the first mortgage, after all, I owe them a hell of a lot more that 22k. Am I right?I called Wells Fargo today and they told maybe because I'm current with the payments is the reason why they didn't call me yet, she suggested that I should be 32 days late. If I'll do that, my score will lower but if that what it takes to get some attention, then I'll do it. Are they right?I want to get a HELOC on my primary home before my credit score lowers. I'm afraid if Wells Fargo sees a HELOC on my credit file, they may want me to borrow against it to settle, am I correct?usaims