Posted on: 04th Mar, 2010 12:58 pm
My son is in the process of doing a "homesaver" loan on the first mortgage. He has a heloc which we found out has recently been charged off. The heloc lender said they WILL take payments but they would not give him the balance. They said they have not sold it to a collection agency. My question is: IF they decided to take him to court, would they likely garnish his wages? We want to work this out with them but I dont want him to make an effort if I thought that it would end in him losing the home. The home would most likely not be worth the amount owed on it.
>>IF they decided to take him to court, would they likely garnish his wages?
Only if they consider him a higher risk.
Only if they consider him a higher risk.
hi maggie,
the second mortgage lender has charged off the debt because he wants to report the debt as a loss for accounting and tax reasons. the heloc lender thinks he would not be able to collect the loan in full and hence, he has charged off the debt. it is unlikely that he would foreclose your property since there exists a first mortgage lien on the property. however, they may try and get a judgment and resort to wage garnishment to collect the payments from you.
the second mortgage lender has charged off the debt because he wants to report the debt as a loss for accounting and tax reasons. the heloc lender thinks he would not be able to collect the loan in full and hence, he has charged off the debt. it is unlikely that he would foreclose your property since there exists a first mortgage lien on the property. however, they may try and get a judgment and resort to wage garnishment to collect the payments from you.
Thank you so very much for your help. :)