HELOC Question

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colesla

LoanSafe Member
Feb 22, 2021
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Is a Chase HELOC, for which there have been no payments or collection activity for the last 10 years, still enforceable? I am baffled as to why there has been no collection activity for that long unless they were prohibited from trying to collect. Could it be that this debt was included in one of the many Chase Class Action lawsuits that prohibited them from any and all future collection activity? There is still a second lien showing-up in the county records. Will that simply sit there indefinitely until the house is sold or I negotiate a settlement? Thanks.
 

Jzone

LoanSafe Member
Jun 20, 2017
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Is a Chase HELOC, for which there have been no payments or collection activity for the last 10 years, still enforceable? I am baffled as to why there has been no collection activity for that long unless they were prohibited from trying to collect. Could it be that this debt was included in one of the many Chase Class Action lawsuits that prohibited them from any and all future collection activity? There is still a second lien showing-up in the county records. Will that simply sit there indefinitely until the house is sold or I negotiate a settlement? Thanks.
The debt may not be collectable, but the lien will not go away. Well, go away quietly anyway. Find out what your state statue of limitations are on real property: homes, land etc.. Some states are 7 years some have no SOL. Even if your debt was included in a class action lawsuit, that only relieves you of the debt, the lien is still there.

Did you file bankruptcy or just stopped paying? Again, check your states laws, but without bankruptcy, you could still be liable for the debt. If you have already verified that there is a second lien, who is the lien holder? The lien report will give you a paper trail if the debt was ever sold by Chase or if Chase has been the lien holder all this time.

I am in a similiar situation in Michigan and there is no SOL to enforcing the lien in my state. Lien holders can simpy wait it out until you want to sell or refinance. I have had no collection efforts in the last 6 years other than a yearly letter that states how much I owe. However, I did file Chapter 7, so the debt is legally gone. But the lien is still there and I check my county records once or twice a year to see if it has been sold/transferred. I am in no hurry to sell or refinance, so not too concerned at this time, but when I do sell, I know that the lien will need to be settled/negotiated.

Find out your state laws and unless you need to sell or refinace, just lay low.