What to do about an HELOC and foreclosure?

UPDATED: Oct 19, 2012

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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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 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.

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.

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