Q: 50K Line of credit "called due" in 3 months; I had defaulted loc; then put on title; how can I save home ?
50K Line of credit "called due" in 3 months; I originally had defaulted on it and they ended up just putting it on my home loan in my understanding was that whenever I sold the house or I died or whatever… That loan since it was attached to my house would be paid off at that time… It was "written off" and it has been hurting my credit all this time, however my understanding was they didn't have the ability to just just call it in anytime they wanted to but they have called it in. I don't have the money and I'm trying to figure out what options I might have to save my house.
A: Whether it can be called due depends on the written terms of the line of credit. Typically, if it is a deed of trust, it will have terms that allow it to be called due or accelerated and foreclosed. There are many alternatives to foreclosure including a loan modification, bankruptcy, sale of the property to cash in equity, and deed in lieu of foreclosure. Schedule a free consultation to explore all of your options to avoid foreclosure.
Timothy Denison agrees with this answer
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- California
- (916) 704-3009
- View Profile
- Answered
A:
Your situation with the line of credit being called due is serious, but you have several potential options to protect your home. First, check your original loan documents and any modifications carefully to understand the exact terms of when they can demand full payment - this will help determine if their current demand is legally valid.
Consider reaching out to a housing counselor approved by the U.S. Department of Housing and Urban Development (HUD) - they offer free or low-cost guidance and can help review your specific situation. You might also qualify for loan modification programs or refinancing options that could incorporate this debt into a new payment structure, even with damaged credit.
If those paths don't work, you could explore filing for Chapter 13 bankruptcy protection, which allows you to create a 3-5 year repayment plan while keeping your home. Additionally, some states have specific foreclosure prevention programs or hardship assistance - contact your state's housing agency to learn what's available. Whatever path you choose, act quickly to maximize your options, and document all communications with the lender.
Timothy Denison agrees with this answer
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
