Jump to content

heloc and debt collectors


Recommended Posts

Hi There.

Its been a while since I was on the forum, Managed to keep things under control for a few months.

I had/have a HELOC on a rental home that has gone into foreclosure,and sold by the bank. I do not think that they informed the bank with the HELOC about this. The HELOC was secured against the property by way of a mortgage,and now their is no property to secure it to?. An attorney has contacted me and is trying to collect on the loan from me personally. I have DVL'D him and he has responded with some answers.

Any thoughts on how to respond to this?.

Many thanks.

Mick.

Link to comment
Share on other sites

The HELOC lien is what you call a subordinate lien. That means that it is 2nd in place to the original mortgage. That means that the bank that had the original mortgage could sell the house for only the amount they are owed and then wipe the title clean for the new owner by removing the lien through the legal process.

As for the HELOC, at this point, they are what you call an unsecured creditor (Unless they put a lien on another piece of property). You still owe the money but their lien is wiped out. This puts them in the same place as a credit card. They can sue you just like any other bank and then follow the collection process after judgment. You can also declare CH 7 and they would get nothing. You can also settle with them for pennies on the dollar (which they would probably take because they know they will not get much if anything).

Link to comment
Share on other sites

Hi There.

Does anyone have any info on Real Time resolutions. They are contacting me about a 2nd mortgage they say was transferred to them for collections.

The first mortgage was with countrywide and so was the second. the property went into foreclosure and it looks like countrywide has sold the second .

Any info would be greatly appreciated. this has nothing to do with the HELOC on this thread.

Regards.

Mick.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.