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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2603
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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We had a HELOC house that was foreclosed on, and the

Customer Question

We had a HELOC for a house that was foreclosed on, and the HELOC was charged off, but is now on a repayment plan; we've been making the re-payments for 1 1/2 years. 10 years ago, we bought a boat, and it was secured by the boat. We paid the boat off in Feb, and the FCU is holding the title because of the HELOC write-off that is now on a repayment plan. I'd like to know if legally they can do this? The boat was not used to secure the house/HELOC, but was security for the loan that we paid off in Feb.
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 1 year ago.
Hello, A debt cannot be simultaneously charged off, and yet subject to a repayment plan, unless the debt is sold to a debt collector, and the repayment plan is between the debtor and the debt collector, rather than the original creditor (i.e., the FCU). Is this your situation? If not, then please clarify. Thanks!
Customer: replied 1 year ago.
No...literally they charged off the HELOC, then sent it to a Collector...I make payments to the Collector, who pays Coastal every month the amount that I pay them. I can see these payments reflected in my account at Coastal, which is supposedly in write-off status, but yet is 'active' as well....and now they are holding the title to our boat, which is no longer encumbered.
Customer: replied 1 year ago.
I've added copies where it shows the Write-off...and copies (that I just made) of the payment history for just this year (2015)..May has been paid and cleared, but won't show on the account until June. So, it technically is in write-off status with a repayment plan....at least, they have a judgement, and I am making payments as agreed.
Customer: replied 1 year ago.
What I want to know is if it is legal for them to hold our boat title when the loan is paid off...they say that they are holding it because of the HELOC in charge-off status....