I think I am screwed

I also got a letter from Wells Fargo advising me of the possibility of canceling my PM&I. Luckily, I had recently made significant "structural improvements" and "remodeling of living space" as defined in the Wells Fargo letter. So I ordered an appraisal through the Wells Fargo PM&I Department, which appraised my house at $277,000. The original value of the loan was $199,900. Money in the bank right? Wrong! (at least I think so)

While tossing and turning one night, I came to the realization that I had borrowed (in the form of a home equity loan) $19,000 to undertake some of the structural and remodeling improvements.

I am a dumbo for never giving this a thought before! I have not yet received a reply from Wells Fargo on the new appraised value of my home. However, I just know they have a big screen somewhere that they can see that my home has a subordinate lien against it.

Does this spell doom for me? Is there anyway around this? If the answer from Wells Fargo is no, get lost, can I pay off my home equity loan and have Well Fargo reconsider? Anybody have any thoughts on this? Yes, PM&I cancellation sounds good on the surface, but heartache is in how to get there.

The rules, regulations and laws definitely favor the lender.

All spent out in Texas