Not sure what this means...

SecondCor521 · 05-09-2008, 10:06 AM

Hi all,

I bought my home in December 2006. I put down 20% and got a plain vanilla 80% LTV 30 year fixed rate mortgage from USAA. I also got a HELOC from USAA at the same time that was up to 100% LTV, so the line on the HELOC was equal to 20% of the value of my home.

I went ahead and made all my regular monthly mortgage payments. I never drew on or used the HELOC in any fashion; it just sat there with a zero balance.

I recently refinanced to a plain vanilla 80% LTV 15 year fixed rate mortgage from PenFed. Everything has gone perfectly except one thing: both USAA and my local county recorder's office think that my HELOC is still open.

When I was talking with PenFed during the refi process, they said that the HELOC would need to be closed, but that they would take care of it. Apparently they never did.

From what my simple non-legally trained mind would guess, I think I now have the USAA HELOC in first position and my PenFed mortgage in second position. I would also guess that this state of affairs is fine with me and USAA, but that PenFed might take issue with it.

I don't have any current plans to use the HELOC, and I'm just making my regular monthly payments on my new PenFed mortgage. If I had the choice, though, I'd rather have the HELOC than not.

Is there any way this situation could come back and bite me?
Is there any way this situation could be advantageous to me?

2Cor521

brewer12345 · 05-09-2008, 10:09 AM

Mum's the word, so long as USAA is happy. Check has already cleared from Pen Fed and they made the error, so I think you are good.

**Want2retire** · 05-09-2008, 10:17 AM

Quote:

Originally Posted by SecondCor521

Is there any way this situation could come back and bite me?
Is there any way this situation could be advantageous to me?

One advantage is that you have a HELOC in place, without all the fuss and possible closing costs and such that a new HELOC might entail.

Moemg · 05-09-2008, 10:28 AM

The only way a Heloc came back and bite me was on insurance . While you have a Heloc in place you can not self insure .It is considered a mortgage even if the balance is zero . With some of the outrageous insurance rates in Florida you are pretty much at their mercy .

SecondCor521 · 05-09-2008, 11:39 AM

Thanks everyone. I guess the scenario I wonder about is if I ever do need or want to use the HELOC, would I run into problems?

Moemg, I won't be self-insuring for a long time, and I'm in Idaho so my rates are really low. (Other than the low insurance rates, though, Idaho is a horrible place to live.)

2Cor521

05-09-2008, 10:06 AM	#1
SecondCor521 Thinks s/he gets paid by the post Join Date: Jun 2006 Location: Boise Posts: 1,218	Not sure what this means... Hi all, I bought my home in December 2006. I put down 20% and got a plain vanilla 80% LTV 30 year fixed rate mortgage from USAA. I also got a HELOC from USAA at the same time that was up to 100% LTV, so the line on the HELOC was equal to 20% of the value of my home. I went ahead and made all my regular monthly mortgage payments. I never drew on or used the HELOC in any fashion; it just sat there with a zero balance. I recently refinanced to a plain vanilla 80% LTV 15 year fixed rate mortgage from PenFed. Everything has gone perfectly except one thing: both USAA and my local county recorder's office think that my HELOC is still open. When I was talking with PenFed during the refi process, they said that the HELOC would need to be closed, but that they would take care of it. Apparently they never did. From what my simple non-legally trained mind would guess, I think I now have the USAA HELOC in first position and my PenFed mortgage in second position. I would also guess that this state of affairs is fine with me and USAA, but that PenFed might take issue with it. I don't have any current plans to use the HELOC, and I'm just making my regular monthly payments on my new PenFed mortgage. If I had the choice, though, I'd rather have the HELOC than not. Is there any way this situation could come back and bite me? Is there any way this situation could be advantageous to me? 2Cor521 __________________ "At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.

05-09-2008, 10:09 AM	#2
brewer12345 Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Mar 2003 Posts: 8,924	Mum's the word, so long as USAA is happy. Check has already cleared from Pen Fed and they made the error, so I think you are good. __________________ "The meat slides out in the shape of the can."

05-09-2008, 10:28 AM	#4
Moemg Thinks s/he gets paid by the post Join Date: Jan 2007 Location: Sarasota,fl. Posts: 2,461	The only way a Heloc came back and bite me was on insurance . While you have a Heloc in place you can not self insure .It is considered a mortgage even if the balance is zero . With some of the outrageous insurance rates in Florida you are pretty much at their mercy . __________________ "Freedom is just another word for nothing left to lose "

05-09-2008, 11:39 AM	#5
SecondCor521 Thinks s/he gets paid by the post Join Date: Jun 2006 Location: Boise Posts: 1,218	Thanks everyone. I guess the scenario I wonder about is if I ever do need or want to use the HELOC, would I run into problems? Moemg, I won't be self-insuring for a long time, and I'm in Idaho so my rates are really low. (Other than the low insurance rates, though, Idaho is a horrible place to live.) 2Cor521 __________________ "At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire. Last edited by SecondCor521; 05-09-2008 at 12:04 PM.

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