Bank Of America - Heloc Situation


LoanSafe Member
Hello everyone, been a member for a longtime here just reading all the stories. I've have a odd situation. I took out a HELOC from BofA back on 11/02/2007. Long story short, like everyone else the market tanked. I am located in California. The first mortgage is under my mothers name and the heloc is under my name.

Current Value: $400k Via Zillow
1st : 370k (Current)
2nd : 250k (BofA) Default

I defaulted on the heloc and on 03/02/2009 they filed a notice of default and on 06/04/2009 there was a Notice of Trustee Sale. That never went thru because I'm not too sure they were aware of their position and the value of the property. Back then it was around $290-300k.

I completely ignored them and still have ignored them. My mom wanted to refi the house but obviously can't because of this situation. Here is the kicker that is kind of odd for me. The loan has been charged off and doesn't report anymore on any of the three credit bureaus. I never received a 1099-c, well let me rephrase that, I'm not sure if they issued one to me because of the mailing address and me moving and them having a different mailing address.

What are my options because I know from what I've read on here that SOL on secured notes via real estate can be up to 10 years in California. Where should I start? Should I contact them and see if they own the debt? It's confusing for me because it is not showing up on my credit.


Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage

When the loan is charged off, it is written as a loss for the lenders. It then becomes a personal debt. Once the second mortgage is charged off, the debt is no longer secured and is unsecured. But the lien still remains.

The charge off will stay there for seven years from the date of last activity which is normally the charge off date. The lien will remain until you sell and at that time you will have to have had it settled and or settle it then somehow.

It will be almost impossible to refinance and or sell unless you get the lien removed.

The only way to get it removed is to settle the debt and or sell the home. I have seen LoanSafe members settle anywhere from 3-50%. The most common is about 15% or so.