What to do if a co-signer of a HELOC tookout money that they shouldn’t have?
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What to do if a co-signer of a HELOC tookout money that they shouldn’t have?
My ex-partner was a co-signer on my HELOC. Before I had a chance to freeze the HELOC, she withdrew $22,000 cash from it. I am responsible for paying it since I am the only one on the deed. Do I have any rights in this situation?
Asked on August 29, 2011 Maine
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
If your former partner withdrew $22,000 from your home equity line of credit without any authorization from you even though he or she was a co-signer for it, you are entitled to reimbursement for the money taken and accrued interest from your former partner.
The problem is that you are primarily obligated to repay the lending institution that set up this line of credit secured by presumed real property that you own.
It is wise that you have frozen this line of credit to prevent any future problems for unauthorized withdrawals. You should send a written demand letter to your former busienss partner seeking the immediate return of this money to you so you can pay down the line of credit.
If you receive a response that is not to your satisfaction from your former partner or none at all, you should consult with an attorney concerning your legal options.
Good luck.
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