What to do about an HELOC and foreclosure?
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What to do about an HELOC and foreclosure?
My home was foreclosed about 3 1/2 years ago. I had a $105,000 HELOC at the time. The HELOC company has sent monthly bills ever since and not acknowledged the foreclosure. They have just sold the HELOC to a bank, who is now stating it as a loan handled by them. I have not made a payment on it or discussed it with anyone since about a year before the foreclosure. I am a disabled senior with a total income of $1455 per month. I have a small piece of property. Can they sue me for it? Can they take my disability payments? Can I make this bill go away without bankruptcy? None of them has sued me or gotten a judgement up to this date.
Asked on October 19, 2012 under Bankruptcy Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Can you be sued for the HELOC? Yes--the loan or line or credit is not extinguished by the foreclosure. All the foreclosure does is allow the foreclosing lender to sell the home and apply the proceeds to what is owed. But if that loan is not paid off in full, that lender can often sue you for the balance; and any other lender, whose loans were not paid, can sue you to get the money you owed them.
Social security and most types of disability payments are exempt from garnishment; however, money in your bank account, any real property you own, and any other valuable assets (such as vehicles) are vulnerable.
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