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LawTalk
LawTalk, Attorney
Category: Real Estate Law
Satisfied Customers: 37395
Experience:  I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
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I see youre in texas, do you know with a heloc loan, if the

Customer Question

I see youre in texas, do you know with a heloc loan, if the note is not paid after the ten years is up and your home is used as collateral, how long do they have to repossess the property?
Submitted: 2 years ago.
Category: Real Estate Law
Customer: replied 2 years ago.
Im sorry, the property is in Georgia
Expert:  LawTalk replied 2 years ago.
Good evening,
I'm Doug, and I'm very sorry to hear of your situation. My goal is to provide you with excellent service today. I am a licensed GA attorney.
With a HELOC loan, there is typically a lien placed against the property, or a Deed of Trust, and with that in place, the property is always subject to being foreclosed on by the lender if there is a default on the note.
The lien remains valid as long as the note remains unpaid---even years after the original due date. It is just like a mortgage---even if the borrower discharges the loan in bankruptcy, the secured interest in the property remains and the lender can foreclose at any time.
I understand that you may be disappointed by the Answer you received, as it was not particularly favorable to your situation. Had I been able to provide an Answer which might have given you a successful legal outcome, it would have been my pleasure to do so.
If you have additional questions, you may of course reply back to me and I will be happy to continue to assist you further until your questions have been answered to your satisfaction.
Kindly take a moment to rate my service to you based on the understanding of the law I provided. Please understand that I have no control over the how the law impacts your particular situation.
Thank you,
Doug
Customer: replied 2 years ago.
Thank you for your response! Is the lien against the property automatically red flagged typically at the bank when that date comes around? does the bank need to send a written document or anything saying that your final payment is due? I have not received any written documents in the mail stating that my final payment is due to them. I have also been paying my monthly payments on time for the interest. I have the cash to pay it but I won't have it until after the due date. I am not sure if I should go to the banker and tell them my situation or just not say anything until I get a written notice? Please help!
Expert:  LawTalk replied 2 years ago.
Good morning,
Sorry for the delay. By the time you posted your last response I had left my office for the evening to spend with my family.
The lien doesn't have to be red-flagged at a given time. Like a mortgage, the lien is filed against the property at the time the loan is first made. It has been an encumbrance on the property since the date that you took it out.
As for the due date of the note, I am pretty certain that their computer will alert them when the payoff/balloon date arrives.
Technically, there is no legal obligation on the part of the bank to send a reminder that the debt is due---but I don't know of any lender that does not communicate this fact to their borrower. It is standard business practice.
If all you need is a bit of extra time before you can pay off the note, then by all means, just communicate that to the banker. The foreclosure process would take many MONTHS---if they would even consider foreclosing immediately----and I am sure that you will have little trouble getting additional time to get your payoff together. Just let them know that you will be a bit late with the payoff and you should be just fine. You really are in no danger of losing your home.
You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.
Kindly, remember to rate my service to you. That is how I am credited for assisting you.
I wish you and yours the best in 2015,
Doug