Received Letter From Attorney/collection Office Concerning Heloc After Seven Year In Ny Of No Contac

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Moe Bedard

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Loan Safe Mortgage
Aug 10, 2007
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Thank you Moe,

Should I just wait for an offer of settlement, ignore it, I would love to settle this to get the lean of my house?
You are welcome.

The problem if you try to settle is that you will restart the statute of limitation. But you cannot settle without speaking with them so you are caught between a rock and a hard place. If you have 10-30% of what is owed, then I would consider settling now, but you do run the risk of not settling and the statute of limitation clock restarting.
 

just_me

LoanSafe Member
Sep 14, 2015
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You are welcome.

The problem if you try to settle is that you will restart the statute of limitation. But you cannot settle without speaking with them so you are caught between a rock and a hard place. If you have 10-30% of what is owed, then I would consider settling now, but you do run the risk of not settling and the statute of limitation clock restarting.
My 2 cents

One could always throw in legal language and refer to it as the 'alleged' debt. :)

My mistake on settlement was not requiring their signature on the lien release as condition. (Well I did, but they ignored it.) Remember that. Consider a pre-settlement letter for them affirming they will release lien upon payment. If you settle in exchange for a lien release... by all means PREPARE the lien release for them and include it with your settlement offer. ( One can find samples and wording from the records of others, surf mortgage with lien releases in your local County Land Records. Have an attorney review for small fee if you need to feel better.)

If this is local legal person for the bank (debt collector), I would even go so far as delivering the settlement check and picking up the signed lien release simultaneously.

(I'm just another homeowner, not attorney)
 
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Lory

LoanSafe Member
Apr 2, 2016
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Do you find Bank Of America is still settling equity lines that have defaulted? It has been at least a year since their last contact and nothing since their denial to settle with our offer...it's nerve racking. It now shows up on our credit that it is with someone else but it is still them when I look up the address. It has been written off and transferred but hush hush from them