Question: Our house was foreclosed in Arizona on a little over a year ago in AZ. But we are still getting (and paying) the bill for a Home Equity Line of Credit we had on the same property. Is there anything we can do to reduce or eliminate this bill since we were foreclosed?
Answer: -Yes, if I understand you correctly, you are making the same payment on your HELOC as you were before the auction. Usually in a situation like this, most homeowners will settle with the bank for a smaller amount and create some sort of payment plan to payoff the note within a short time. Another option is to file bankruptcy and wipe it out completely. This is the main reason why banks will usually work with you in finding a solution because they would rather have some money instead of no money. Hope this helps.