Who Holds the Lien After Chargeoff? (HELOC)

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LoanSafe Member
May 1, 2012
My HELOC charged off (I think) after 6 months of no payment. So I started getting letters from a collections agency. The letters say that they are collecting $xxxx for a delinquent debt from some insurance company.

I pulled my credit report, and see that the heloc is paid in full, account closed by creditor.

What I assume happened is that there was insurance on the heloc balance, so the insurance paid it off, and now the insurance company is sending a CA after me? Ive never had a chargeoff before, so Im not sure what it looks like. There is definitely no mention of "chargeoff" on the account, as a matter of fact, it says "pays as agreed".

Make sense? Anyway, at this point, Im curious who holds the lien, in case I feel generous and decide to start settlement negotiations (if I find a 4 leaf clover)

I dont see any mortgage assignment changes for the HELOC yet....hmmm
Obviously, if FC happens by the 1st, this is moot. However, with the 2nd out of the way, it is possible that some mod might be able to happen on the 1st. Just trying to line up my ducks. And yes, I know, do not waste time or money settling a 2nd until/unless the 1st is squared away.
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LoanSafe Member
Indymac or One West did same to us, now about 6mo's later we get collection letters saying we are 1 or 2 mo's behind and they are going to file lawsuit on $2100 balance that was technically discharged in bankruptcy over a year ago & no it wasn't reaffirmed and yes, it was reported on credit as closed $0 account and either charged off or bankruptcy. So I am curious to know what happens. We just received permanent papers for a loan mod on 1st and I think it could be part of a plan to foreclose using the 2nd since it wasn't lien stripped in bankruptcy and because they really can't foreclose on our 1st without risking litigation holding it up. Sorry for the tangent there

So I too am curious as to $0 closed on credit and yet collection notices later or what about settlement on foreclosed loan wih $0 balance? That was reflected status on our 1st in the bank's records.
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