What to do if a co-signer of a HELOC tookout money that they shouldn’t have?

Get Legal Help Today

 Secured with SHA-256 Encryption

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 10 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.

 


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption