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BofA Heloc.... Contacted by Collection Company.

Discussion in 'Debt Settlement' started by HopingtoFind, Apr 19, 2011.

  1. HopingtoFind

    HopingtoFind LoanSafe Member

    Tomeason, what do you think?

    We have been contacted by Collection Company in regards to BofA Heloc that was recently charged off... they are and attorney firm located in Georgia. We live in California and the house is in Florida.

    They write that they understand current financial situation and would like to work with us to resolve the debt owed and achieve a positive result for both us and BofA. They want to discuss potential options prior to proceeding with litigation... They are in Georgia and we are in California, I wonder why they wouldn't give it to a law firm in CA if they want to sue.

    Have to go research law in Florida in regards to Helocs, I am assuming they can sue.
  2. azmo12

    azmo12 LoanSafe Member


    I too have a charged off HELOC from B of A.It has been all quiet for some time. regarding a lawsuit and a judgement, what remedies do they have? I know garnishment of wages, is there such a thing as a debtor examination? Where under oath you have to answer questions about assets etc. Have you studied up on this at all?
  3. HopingtoFind

    HopingtoFind LoanSafe Member

    What state are you in? Also do you still have the house? If you're in CA for example they can't sue if you still have the house, their only remedy is to foreclose... and of course if the house is underwater they'll just sit there. On the other hand if you don't have the house anymore then they could potentially pursue in court and IF they get a judgment they could potentially garnish wages and/or try to get your assets.

    Our situation is the house is in Florida and unfortunately they could potentially sue even if we still have the house, I believe.
  4. TomEason

    TomEason LoanSafe Guide Staff Member

    Thanks for the question. Pretty strange that BOA is using a Georgia attorney. I'm afraid I don't know the answer because I'm not up to speed on FL foreclosure law. As you know, if it were in CA, the HELOC lender's sole remedy is FC. However, in FL, I suppose other options are possible but I have a feeling this law firm may be blowing smoke and trying to intimidate you, as all collections people do. Let us know what you find out about it.
  5. HopingtoFind

    HopingtoFind LoanSafe Member

    Update: They have left one very polite message to call them back. It has been about a month and a half since charge off so about 8 months since we stopped paying. Thinking if I should call back and see what they say.

    I have read posts on other forums of lenders suing on existing Helocs in states like FL where they are not barred from doing so.

  6. TomEason

    TomEason LoanSafe Guide Staff Member

    Hi HopingtoFind
    I recommend you research the FL foreclosure statutes and find out for yourself what they can do. I definitely would not rely on forum posts, or for that matter the attorney. You should be aware of what they can and cannot legally do before calling them. But I really don't see an advantage to calling them back either way. These law firms have collections personnel on staff who dun debtors by phone. When and if they get serious, they will likely send you a letter.
  7. HopingtoFind

    HopingtoFind LoanSafe Member

    I have researched and they CAN sue, there is nothing in FL statutes that barres them from suing, I am not asking on this forum if they can sue or not, I know that they can. What I was referring to in the previous post is that I saw evidence on other forums of that happening.
    They have sent a letter in April, if you read that top post you'll see what they said in the letter. The letter does not look like a typical collection letter, but rather a very custom letter from an attorney. This is office is an attorney's office rather then collection agency... believe me I can tell the difference.
  8. TomEason

    TomEason LoanSafe Guide Staff Member

    Thanks for your clarification. Forgive me if I was unclear on your situation; I've carefully re-read your prior posts on the thread. Since you have concluded they can sue you on that HELOC, I suppose settlement is an option. However, were it me, I would not consider settling. And I would most likely never communicate with them. I believe their overtures to you are most likely meant to intimidate you into calling them and discussing a settlement. So, I would call their bluff and wait to see whether anything happens. Any potential lawsuit will have to be filed in your county in CA, and served on you here. You can be on the look out for such a potential filing by monitoring your Superior Court's register of actions online regularly. When, and if, you see a complaint and summons filed, then you will know to make yourself scarce and difficult to serve. If you can avoid service, the lawsuit will be dismissed in, usually 3 months time. The register of actions will show an OSHC (order to show cause) hearing scheduled 3 months after the filing. It's a mandatory hearing for the plaintiff to show cause why the defendant (you) has not been served, and why the case should not be dismissed.
  9. HopingtoFind

    HopingtoFind LoanSafe Member

    Thank you Tomeason for your advice I didn't know that I could monitor filing of the complaint before service, I will look into this. This Heloc is actually in my husband's name only, I am legally not responsible for it and I was actually contemplating telling them that he is working out of the area most of the time so they're aware it would be difficult to serve him... not sure.
  10. TomEason

    TomEason LoanSafe Guide Staff Member

    Thanks for your update. Be careful, because even though the HELOC is in his name, the service can be a "substituted service" on you or any other adult found at his residence. Service can likewise be made by at his place of employment. (Hopefully they do not have that info). If you want more info on how to evade (avoid) service in CA, ask me, or you can research the CA statutes governing the service of legal process, and the methods that can be used. Another caveat. Do not sign for any certified mail from GA, as CA law permits an out of state plaintiff to serve by certified mail. This is just in case the suit is filed in FL, where your property is located.
  11. HopingtoFind

    HopingtoFind LoanSafe Member

    Thank you I have to admit I have very little knowledge about all of this, so anything you could offer would be great help. They do not know where he works, so don't have to worry about that. Yes, anything you could let me know about avoiding service I would appreciate.
  12. TomEason

    TomEason LoanSafe Guide Staff Member

  13. HopingtoFind

    HopingtoFind LoanSafe Member

    UPDATE: I have emailed a Rep at Bank of America, he was assigned to our case when we defaulted on our Helocs, and again offered $3000, which approximately 5% of the balance on the Heloc. He forwarded my email to Litigation Manager at BofA, who basically emailed back saying that I need to contact a Law Firm/Collection company that our case was assigned to and I would need to provide financial information.

    10 months since we defaulted and they basically have the same stance as if we just defaulted... Makes me wonder if anyone out there is settling with Bank of America...

    When I settled with Bank of America CC, it was very different, they were very willing to settle and negotiate, very different here, it is like they want to keep it on their books as is.
  14. milo50

    milo50 LoanSafe Member

    We are in Florida and also have a charged off BOA HELOC. It was sent to the same Atlanta law firm mentioned in previous posts, and we have been contacted by letter and by phone calls. We are in the process of modifying our first with another company. The HELOC was charged off in October, and now the Atlanta firm representing BOA is threatening to sue us for the balance. We have offered five percent which was declined this week.
  15. HopingtoFind

    HopingtoFind LoanSafe Member

    Milo, Welcome and thank you for responding.

    Was it [FONT=&quot]Drew Eckl and Farnham? Have they threatened from the time that Heloc was charged off and sent to them or if not at which point did they start threatening? Have you tried to communicate with them from the very beginning?

    Have they made any settlement offers to you or what has been their position?

  16. milo50

    milo50 LoanSafe Member

    Yes that is the same law firm that has contacted us. We were sent a letter with the exact wording as the letter you received. We did call them at that point and made the five percent settlement offer. The time frame was about six months after the charge off. We were called this week by a collector working at the firm. He said our offer has been declined. He suggested five percent down and then a monthly payment for three years to total a twenty five percent settlement. We have said no. Right before the loan charged off in October, we were contacted by BOA and were given a twenty percent offer. Has anyone succesfully settled with BOA?
  17. HopingtoFind

    HopingtoFind LoanSafe Member

    That is interesting... did they ask you submit financial information or made that a pre-requisite for settlement?

    In our case BofA never offered a settlement and kept insisting on providing financial information before any negotiations happen.
  18. milo50

    milo50 LoanSafe Member

    Hoping to Find,
    We did make the mistake of submitting financials (with all account numbers blacked out) to the attorney, as this was before I found this forum. But, we have had such a financial setback in Florida with income loss we don't have anything to hide. If BOA was cooperating they would accept our five percent offer since it's all we can put together. The collector did ask for an update of our financials, and we have said nothing has changed. They are completely underwater on the entire loan amount.
  19. HopingtoFind

    HopingtoFind LoanSafe Member

    One other question, I am assuming this is your primary residence, are you current on your 1st?

    In our case this is a rental, and we stopped paying on both 1st and 2nd, both with BofA... 2nd is completely underwater and house is worth less what we owe on the 1st. Rent doesn't cover mortgage + taxes on the 1st. Yes, unfortunately I haven't seen any success stories of settling with BofA at 5% to 10%, but am hoping that they will start coming.
  20. TomEason

    TomEason LoanSafe Guide Staff Member


    I agree with you about the lack of posted success stories of attractive settlements on BOA 2nds. I've searched these boards and have found none in the 5-10 percent range of loan balance. However, as you hope, I do believe more BOA success stories will soon be forthcoming.

    Why? Because we forum members are becoming more educated about settlement possibilities and strategies. For instance, the Strategy for Settling Your 2nd thread was started on 2/1/2011, just 5 months ago. Many forum members are now patiently engaged in the long process of seeking a favorable settlement with BOA. I truly believe that BOA recovery will begin to see the light and offer good settlements.

    BOA is undergoing a lot of corporate re-structure, has settled with loan investors to the tune of $ Billions, is in the process of settling for $ Billions with the states' Attorneys General, and has thousands of lawsuits against it. As a result, BOA has had to increase its reserves so much that it has reported a loss on its latest earnings report. And recently (before this earnings report), when BOA announced it was paying a dividend, the Treasury disallowed that move, due to the fact BOA still has not completely repaid TARP funds. This is a very sick bank.

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