Foreclosure University Forum


Equity Line written off

by foreclosureuniversity ⌂ @, Tuesday, October 06, 2009, 20:37 (3518 days ago) @ keger1

� OK here's a good one, I have an equity line of credit with WAMU and in June
� of this year they wrote the debt off. The outstanding loan amount was
� about $325,000 and they sent the debt to a collection company, Oxford, who
� said they had the file, but WAMU took it back because they didn't collect
� on the debt. Then, after several calls to WAMU and Chase, both of which
� kept telling me they could not either find the file or couldn't talk to me
� once it's been sent to a collection company, they finally have re-assigned
� the file back to Oxford and that's where is stands at this point.
� The property is in California and I have a Homestead for $125,000 on this
� home which I live in. The first mortgage is with a private smaller bank
� and I'm currently down 4 months with them on payments, and they've files
� an NOD which I recieved on September 13th 2009; the balance with the 1st
� is about $390,000 plus the back payments which run about $2,200 per month.
� The 1st mortgage is down about $8,800 but the NOD was filed for about
� $10,500; probably due to penalties and such. The 1st lender agreed to
� allow me to bring in $4,500 and catch up on the rest over time, but then
� said before they work out anything with me they'll need to know what the
� 2nd lender plans on doing; more specifically, the want to know if the 2nd
� will subordinate to any re-drafting of the 1st Note they might work out
� with me.
� Due to a business gone bad over the past 3 years I owe about $230,000 in
� credit card debt, have a rediculous lawsuit pending against me from a
� family member who has no chance at winner but cost me money to fight, a
� rental property I'm short selling right now, and one creditor who actually
� filed a lawsuit and received a judgement for around $12,000. My plan is to
� BK everything and start fresh so I'm interviewing attorney's now and will
� pick one in the next week to represent me and finally get all of these
� "Monkey's" off my back.
� So now, all of that being said here's a few questions:
� 1. What do you think is the best course of action for me to take to keep
� my home>

� 2. What's the best way to avoid a deficiency judgement>
� 3. Do you think WAMU will definetly send me a 1099 and if so will it be
� for the $325,000 they've written off already>
� 4. If they've already written the debt off do you think my attorney will
� be able to have them release the lien from my home>
� Thanks in advance for your time and have a great day!

Sorry to hear of your situation...I think at this point you are headed in the right direction by seeking the advice of an attorney who knows the California laws and can help you the most. Bankruptcy is definitely an option that will allow you to keep your home and get rid of some of your unsecured debt. The best way to avoid a deficiency judgment is to get the loan satisfied which can be done through a short sale. If they release the lien, they still have the right to come after you for the difference and file that judgment against you. Although a bankruptcy would wipe it out. More than likely they will issue you a 1099 and count that loss as income to you. You'll need a good accountant to work with you in seeing if you qualify so you don't have to pay taxes on it at the end of the year. Hopefully things turn out better for you next year.

Good Luck

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