Question: We foreclosed on our home in California in 2010,it also had a equity line of credit that has a third party now calling trying to collect. What options do we have if any?
Well the best option is to settle with them. Offer them a small payoff amount. I’d start at 10% of the loan amount. Your biggest challenge, as with all homeowners, is that banks automatically assume you don’t know what you are talking about. So in most cases it’s hard to negotiate a settlement with them. You are almost always better off having a 3rd party individual, like an attorney, talk to them. Be sure to let them know you are prepared to file bankruptcy because your attorney advised it. They get nothing if you go that route so many times they are inclined to accept any offer you throw at them that is reasonable.