Thousands of verified Experts are ready to answer your specific questions 24/7.
Satisfaction is guaranteed and you pay your Expert only if you are satisfied.
Just type your detailed question and click "Get an Answer."
In minutes you'll get a response from an Expert. You can always ask follow-up questions.
Happy with your answer? Just click "Accept" to pay your Expert.
I just reviewed my WAMU Equity line of credit loan documents because I was surprised the they "charged off" the balance when I was working through the modification on the first lien (also with WAMU). That being said, I went through the docs because I remember that when we refinanced, the home all funds went completely toward refinancing our home (nothing was given to us to "spend"). Given that I read under one section called "Security Instrument" which states "You agree to perform all of your obligations under the Security Instrument. Regardless of the terms of any other security instrument that you have with us, no personal or real property, other that the Property, secures your obligation under this Agreement." Does this mean that we are not personally liable for this?
Already Tried: Shaver Lake, CA
Thank you for contacting our JA team for guidance.
It means that the property on which you obtained the equity line of credit can be foreclosed on if you do not make payments as required by the loan agreement. If they forgave the balance owed, you should receive a 1099 in the year the loan was forgiven.
It they charged off the balance, you would not be personally liable for any deficiency/default balance. If they did not charge it off, you would be personally liable.
if you need additional information.
Best regards XXXXX XXXXX
TG
___________________________________________________________________________________
Please press the "accept" button so I may be credited and paid for my time when I have answered your question. I am available to answer follow-up questions or to clarify this answer. Positive feedback and a bonus are always appreciated. Thank you very much.
I had thought if they charged it off, that they could take me to court and get a judge to have me pay for it (or part of it). Just confusing?
If you obtained a modification, then they charged off/forgave the previous loan and your new loan agreement would be controlling.
Let me highlight one point. Both the first and second were with WAMU. The modification was only tied to the first (i didn't know that) and when the mod was approved, they charged off the second. Do the above points help change your comments any?
No. It means that when they did the modification, they forgave the second mortgage.
All the best to you!
Lawyer
JD, BBA Over 20 years legal and business experience.