Mother’s HELOC loan in foreclosure
Hello, new here and just looking for some help on how to move forward.
75 year old mother in Texas started a HELOC loan against her condo to afford a working AC for the brutal summers. We setup autopay & everything is going fine.
Fast forward a year or two & she has started developing some cognitive issues that we are currently getting diagnosed. I became her POA & started helping her get all her finances under control. During that process realize loan hasn’t been getting paid since August of 2025.
Once I learn this I head to the bank the next day & get with a bank specialist to pay the delinquent amount so that we can get back on track with paying her loan. She has to get her manager involved because the loan account was no longer in the bank’s database. After the manager speaks to another person outside of the bank (believe FED bank) he informs me to pay $1100 to get the loan out of delinquency & get back on track. Boom done go home breathe.
Next week, bank specialist reaches out to let me know account is being reinstated & can start making payments, but can’t do auto pay until September because of a merger. Ok cool. Whatever.
The next week learn my mother received an envelope that had a check for $1100 in it with a letter saying “insufficient funds to reinstate loan & now in default”. Reach out to bank specialist and they are as confused as I am. They look into it & two days later (Friday at 4 pm) I’m informed it is now in foreclosure.
Reach out on Monday of this week to figure out how to reinstate the loan, speaking directly with the foreclosure lawyer they assigned. Am sent an email with following amounts listed for reinstating the loan with a deadline of July 31st 2026:
Delinquent AMT: $1,200
Late fee: $55
Inspections: $170
Legal Fees: $4,555
Currently scrambling to figure out how to pay because I don’t make great monies.
Looking for any advice on reducing or removing the legal fees if possible.
Thanks in advance!