Profile picture for annika23

Interest only Equity Line with 296K balance

Thank you in advance for reading this..I am trying to help my elderly relative in figuring out what type of loan she has with BofA. She has a payment stub only for an "equity maximizer" account that is showing a colossol balance of 296K. She claims that she "may" have given power of attorney to a that a friend who was the family's accountant who was trying to help by getting rid if a fixed rate portion of the HELOC and replacing it with an interest only one to dramatically lower her payment. Her deceased husband apparently took out a huge equity loan out out against a paid off home. Questions...Is is even possible to have an equity line of credit this large? If so, how long do the payments remain low? What is the typically expiration date on HELOCs. She had no paperwork and the friend has refused to produce the paperwork that she signed on her behalf. Additionally, she had told her to not research it with BofA in case they start asking hert to pay more..I don't what accountant would say something like that. My mother in law is in good standing with the loan payments but we need a copy of the terms? How do we get that without talking to BofA? I don't know of any other way. I want to validate how long she will have these low payment for. She is fearful that there is a balloon that she is unaware oof. She also refuses to confront her friend even thought she thinks this is strange. She wants to rent her house out and needs assurance that the low payment will be covered by the rent.

Any advice?.
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May 12 2012 - US
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Answers (6)

Profile picture for sunnyview
It is really nice of you to step up and try to help, but you maybe dealing with a case of financial elder abuse based on what you are saying. I would contact your state or local office for elder ombudsman or an office in your state that handles elder abuse complaints. Your relative has a right to know where that equity went and what papers were "signed on her behalf".

Not asking B of A for a copy of the paperwork is not an option and she needs to know what was signed. I think that you may need to get her some help to revoke the old power of attorney and get someone else to look into the finances for her. The office of the ombudsman or the national agency can tell you what you can do and how they can help.

Do not wait to sort this out. Often if it is elder abuse, the people who had their fingers in the pot count on not being found out until after the person has passed away which makes this harder to deal with. Maybe everything is above board, but I do not like the sound of what you/she is being told by the "friend". Cut that legal POA and start digging into the facts.
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May 16 2012
Profile picture for annika23
Thank you for your input.
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May 16 2012
Profile picture for annika23
thanks for your imput
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May 13 2012
Profile picture for wetdawgs
Something sounds fishy.   Please investigate it fully.   "elder abuse" is what leaps to mind, of course.

I have PofA for an elderly relative, and any important piece of paper can be produced at almost any time (usually within minutes), as can the P of A document.



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May 12 2012
Profile picture for annika23

thank you for your advice

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May 12 2012
Ask b of a for a copy. They service the agreement they can't alter it because you inquired. Most HELOC will have a 10 or 15 year draw period. During this period the payments are interest only and adjust monthly based on Prime Rate plus or minus a margin. Prime hasn't moved for several years so the payments likely have been steady and also very low relative to the balance. When the draw period end there will typically be 10 year repayment period to pay back what is owed in installments. Of course you need to read the loan agreement to find out the actual details that apply to your scenario.
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May 12 2012
 
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