How long can a lender come after me for a default on payment for a HELOC that is the second loan and 1st loan forclosed 5 years ago?
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How long can a lender come after me for a default on payment for a HELOC that is the second loan and 1st loan forclosed 5 years ago?
Asked on August 22, 2012 under Real Estate Law, California
Answers:
Cameron Norris, Esq. / Law Office of Gary W. Norris
Answered 12 years ago | Contributor
First of all, you should really consult with a local real estate attorney.
That said, unless there was a subordination agreement between the lenders that was recorded, Title Priority Theory provides that once a senior lien is foreclosed on...and when the junior lienholder is given proper notice, then that junior lienholder has no right of action subsequent to that foreclosure proceeding.
So 1) Was there a subordination agreement
2) Was the 2nd mortgage holder (HELOC) served in the foreclosure action
3) Go talk to an attorney.
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