How long does a lender have to pursue deficiency judgment on HELOC?

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How long does a lender have to pursue deficiency judgment on HELOC?

I live in a different state now. Would it follow past or present state law law? They are still reporting HELOC as 120 days late each month on my credit report but not charged off.

Asked on April 18, 2012 under Bankruptcy Law, Delaware

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

The laws of the state where you entered into the equity line of credit would apply and where the loan was secured apply. If the equity line of credit was part of the purchase money for a residence then possibly your state's anti-deficiency laws would apply.

However, most equity lines of credit are not purchase money. Most states have a four year statute of limitations to file a lawsuit for breach of a written agreement such as the one that you are writing about commencing upon the date of the breach which would be the date you made your last payment under the equity line of credit.


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