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I have a home a home loan with a balance of 549k. My home is…

Hello I have a home a...
Hello
I have a home a home loan with a balance of 549k. My home is worth 720k. I pulled out a HELOC in 2006 for 100k. Than I let it go, thinking I was going to loose the house in 2009. But I was able to do a loan modification on the 1st and save the home. I never followed up on the HELCO. Last I heard they sold my loan to another credit union in 2009. No one has tried to call, send anything in the mail or try to collect. I
Don't even know who has the HELCO. However, there is a lien on my home from the credit union. Also, last year the credit union "charged off" the loan on my credit report and it has since been removed
Now my question is what if I want to sell my home, Has this HELOC been written off? Should I contact the credit union? Can they foreclose on me or attempt to collect the debt with interest on top of that?
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Answered in 13 minutes by:
7/27/2017
Barrister
Barrister, Attorney
Category: Bankruptcy Law
Satisfied Customers: 42,085
Experience: 17 years practicing law. Landlord 26 years
Verified

Hello and welcome! My name is ***** ***** I am a licensed attorney and will try my best to help with your situation. There may be a slight delay in my responses as I type out an answer or reply.

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You may also be offered a phone call, but those don’t come from me and are offered by the website and you are under no obligation to accept.

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Now my question is what if I want to sell my home, Has this HELOC been written off?

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Unfortunately, a ""charge off"" doesn't mean that the loan has been "forgiven". They just wrote it off on their taxes as a loss so they could deduct it. If they recover it, they have to recognize it as income. So the lien is still there and if you sell the house, it would have to be paid off.

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Should I contact the credit union? Can they foreclose on me or attempt to collect the debt with interest on top of that?

.

You can see if they would agree to settle for some lesser amount if they sold the loan to someone else, but you would have to see if the bank had the info on who actually owns the loan now. It should also be on your credit report as well.

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And yes, whoever the legal owner of the debt is, they could decide to try and sue you for breach of contract and then foreclose on the property if they thought that they could get their money and any accrued interest that has been added into the loan all these years..

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I am very sorry that I don’t have better news, but please understand that I do have an ethical and professional obligation to provide customers with legally correct answers based on my knowledge and experience, even when I know the answer doesn’t make the customer happy...

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.

Barrister

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Customer reply replied 10 months ago
Thank you for your reply. So, will they settle with me for a lower amount even though I have equity in the property?

That is the million dollar question... Foreclosing is expensive and they may not want to incur those expenses.. But they may also be happy to just sit back and wait until you need to do something like sell or refinance and then block that unless they get paid off..

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So there is not really any way for me to be able to answer that as it is entirely up to them if you contacted the owner of the debt now. They likely paid pennies on the dollar for it, so they might settle for much less than is owed..

.

.

thanks

Barrister

Barrister
Barrister, Attorney
Category: Bankruptcy Law
Satisfied Customers: 42,085
Experience: 17 years practicing law. Landlord 26 years
Verified
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