Not sure if this is the right board, sorry in advance. Asking for my mother, now for a little background my grandfather and grandmother owned a Chevrolet dealership for 30 years during the early-late 90s there was some auto workers strike coupled with embezzlement from there accountant that caused them to liquidate most of their assets after that they found it hard to recover and ended up selling to a large dealership chain but they found a loophole and ended up cheating them out of what they expected to have.
TLDR near the bottom...
They lost all there money opened up a HELOC that ended up at 389,000 the repayment period appeared they would not redo the line never missed a single payment and it then went into default in September of 2016 the house is worth around 725,000 with renovations a lot more it is very dated. however due to the time that has passed and we made them eat 50k in taxes the balance now stand as 500,000 or so
Is there anyway to settle this for LESS? My mother owns a home and her credit is around 680. If we could take out a HELOC on her house to pay the hypothetical settlement pull a reverse mortgage once settled pay the HELOC back and be done with it my grandmothers income will not accommodate the payment on a mortgage without a 49 year term with a ballon on the back end if they would do it we’ve been fighting the bank for 4 years or so and they have not as it stands we have 170k in equity appraised in 2017. We owe 250k.
Is chapter 13 an option? She makes 45k annually If anyone has any idea how to proceed we would greatly appreciate it.
