BECU HELOC pay off...

[RBisDebtFree]

Hello, my parents in law had stopped paying their HELOC with BECU back in Apr 2009, in Sep 2009, the account balance was zeroed out and it showed a record of account pay off and account charge off. They didn't get a 1099 nor summons

What does it mean? What could it mean? It was $200k but they didn't keep any of that money, all went into house construction...

Thanks!

[Flamingo]

The answer lies in the documents your parents-in-law signed when they took on the loan. Have them pull out those HELOC papers. They may have, upon signature, authorized the bank to do certain things if they do not pay. Other than that, they may not be telling you everything...

[RBisDebtFree]

You mean they could have authorized the bank for a recourse case? What would I be looking for in the documents?

Also, do you mean that they could probably just not be telling us what they doing (like preparing a case, etc.)?

[Flamingo]

You mean they could have authorized the bank for a recourse case? What would I be looking for in the documents?

Also, do you mean that they could probably just not be telling us what they doing (like preparing a case, etc.)?

I have no idea what would be in your parents-in-law's HELOC contract - you would have to obtain a copy and read it to see what they agreed to upon signing. May I ask why they are not taking care of this...do you have power of attorney to handle this situation for them with their lender? Their lender will not talk to you unless you have a power of attorney or your name is on the account. Just because they did not receive a 1099 does not mean they are relieved of any responsibility. I would highly suggest your parents-in-law contact the lender before some sort of big surprise hits the fan. Stuff like this just does not go away and something tells me your parents-in-law are not telling you everything and you would not know unless you were able to communicate with their lender.

[RBisDebtFree]

I am on the account but I got this discharged in my bk7. They have their cases ready too... What I know is all the info there is, they probably know less than I do.

Do I just need to call the lender to request a copy of the contract? Can I just ask them what they are planning to do?

[lrprn]

I am on the account but I got this discharged in my bk7. ... Do I just need to call the lender to request a copy of the contract? Can I just ask them what they are planning to do?

Unless your name is also on your parents' HELOC as a co-signer, you can ask their lender until the cows come home for information about the loan - you won't get any.

Let me ask a hypothethical question.....if you were getting ready to sue someone or start repossession proceedings and the person called you to ask what you were planning to do, would you tell them, "Sure, I'm getting ready to take your house or your money?" This lender isn't going to tip their hand - don't waste your time. You could actually tip the lender off that your parents aren't paying on the HELOC and speed up a legal intervention!

Your parents are adults. They are going to have to handle this themselves. If they aren't capable, then you can work with them - be there when they call the lender, ask to see their HELOC agreement, set them up with a few property or bk lawyers to discuss their options, etc. But unless you have a legal connection to the HELOC yourself, there's nothing you can do without your parents being involved.

[RBisDebtFree]

My name is on the loan and I am a co-signer.

What you are saying is true, they probably won't tell me anything. The thing is that my parents have taken this out for me to finish my house construction. I failed and failing them and even if that wouldn't be the case, I would still be doing all I can to help them, they are my parents and I love them.

They speak very little english and might not completely understand what is going on, though I am telling them everything that I know, they still might just not understand. They have their bk7 cases ready and will be able to file any time. It's just that I wanted to see if there's any way to know or expect something but it looks like you're right, there's not much that they will tell me.

However, I am still interested on what clauses or what language I should be scanning the contract for to see what can be done to my parents?

Thanks to everyone once again!

[Flamingo]

I am on the account but I got this discharged in my bk7. They have their cases ready too... What I know is all the info there is, they probably know less than I do.

Do I just need to call the lender to request a copy of the contract? Can I just ask them what they are planning to do?

This is totally different than your original posting and that is why I felt something was left out...you are saying your name was on the HELOC along with your parents and you got the HELOC discharged in your Chapter 7 filing? You need to not beat around the bush and post some more information about this situation so someone can help you a bit more...

[RBisDebtFree]

Flamingo, sorry, I did not mean to confuse you. Could you please let me know what kind of information I should add so that others could be able to help?

Thanks again!

[Flamingo]

Let's start over because with what you are posting you are going all over the place...from your postings I gather your parents took out a HELOC on their home to pay for construction on your home and since last April have not made any payments. You were a cosigner on on the HELOC. You filed Chapter 7 in 8/09 and were discharged in 11/09 and you state..."I am on the account but I got this discharged in my bk7." Now you are stating your parents are getting ready to file Chapter 7 and you are trying to figure out why the HELOC is showing on someone's credit reports as "zeroed out and it showed a record of account pay off and account charge off."

If your parents are getting ready to file they will find out soon enough what is going on because they will have to list the HELOC in their BK. I would not worry right now what is showing on credit reports and I would have a talk with the attorney who is handling their Chapter 7 as to your concerns. The HELOC contract will state in one of the numerous clauses what that lender can do in the event of nonpayment. You yourself as a co-signer would not receive any correspondence from the lender as it would go directly to your parents so if something was sent and you mention they do not speak much English, it could have been misplaced or lost. Their attorney will be able to find out for you.

Best of luck to you.

[RBisDebtFree]

Thanks Flamingo, you described the situation very precisely! We will just try to get a copy of the contract from the lender. Thanks again!