Q: Short Sale in May 2010, including a Line of Credit. Short Sale written off. 1/5th of LOC. After 7 yrs, do I owe the LOC?
Short Sale was in GA, with Chase Bank. I had a line of credit on my home loan, with RBC (debt was later bought by PNC). Only a portion was written off on the LOC. Monthly bank payments since 2010 on LOC. The LOC was placed as a default to credit bureaus. After 7 years, can I stop payments?
A:
I'm not sure I understand you, but I think you are asking if an agreement to pay a debt expires after seven years regardless of its terms. While there is a model of that in the Bible called the Jubilee, historians tell us it may not have happened that way even in 1000 BCE. Today, we have 30 and even 40 year mortgages, and they do not expire after seven years.
You might, however, be able to discharge the debt in bankruptcy or buy a discount on a one-time payoff.
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