I 'think' This Is A Success Story But A Couple Questions Please

aardvark

LoanSafe Member
Sep 20, 2013
6
1
3
Per The Plan my wife stopped making payments on her Wells Fargo non-recourse HELOC in the amount of $47,560 back in early 2013. We ceased communication with the lender at that time.

In May of 2014 we sent a low ball offer to settle ($1500.00) which was refused by WF with no counter offer.

Late in 2015 we received a charge-off notice from Wells Fargo which shortly appeared on my wife's credit report. I understand a charge-off does not mean a lien release or debt discharge so we waited a few months to make a second offer to settle and release the lien.

But before we could do that we received a 1099 from WF for tax year 2015 showing the entire amount of $47, 560 as being discharged with the note that "Borrower was not personally liable for repayment of debt."

Accompanying this was a recorded reconveyance from WF as Grantor to my wife as Grantee.

Does this mean the lien has been released? And if not how do I research whether the lien is still against the property?

Thanks for any assistance. This forum has been a real blessing to many people like ourselves over many difficult years.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,850
466
1,000
49
Southern California
www.loansafe.org
Hello,

I think that the lien was released and you may have just hit the mortgage lottery. But you might owe taxes on the debt unless it was part of a bankruptcy and discharged.

You can search the title records online via your country recorder website. You might find the record there and may not. Most often it either cannot be found or the county records have not been updated. The only other way is through a title search by a title company.
 

aardvark

LoanSafe Member
Sep 20, 2013
6
1
3
Hello,

I think that the lien was released and you may have just hit the mortgage lottery. But you might owe taxes on the debt unless it was part of a bankruptcy and discharged.

You can search the title records online via your country recorder website. You might find the record there and may not. Most often it either cannot be found or the county records have not been updated. The only other way is through a title search by a title company.
Hello Moe,

I did some research as you suggested. The full reconveyance IS posted on the county website so YAH-DAMN-HOO! It's a rental property for my wife so from the research I've done there will be tax implications but she's in a low tax bracket and her tax preparer should be able to whittle it down some. Still it beats the heck out of paying the whole debt. And it's odd because the market has nearly re-attained the 2004 price when she bought it and the 1st has been paid down substantially. It may have been worth their while to foreclose.

The HELOC was a ten-year interest-only with a balloon about to be due when I came across this forum. There was no way she could make the balloon or refi at the time. You guys really saved our bacon. I cannot thank you all enough. You're mortgage saints! Best Wishes and Baskets of Gratitude! Ever Your Besties, --Jay and Susan
 
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Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,850
466
1,000
49
Southern California
www.loansafe.org
Hello Jay!

You are very welcome and thank you for the kind words. You made my day :)

I'm so happy for you and Susan. Now you can move on to more productive ventures and put this all behind you. May peace be with you always on your journey.

I wish you both the best!