HELOC - Forclosure

[stress05]

My question involves a foreclosure in the State of: CA
Hello,

We recently foreclosed on our home and moved into what was then our rental property. To finance the purchase of the foreclosed home we took out two loans. Over time we refinanced the 2nd into a HELOC with Citibank (180K). We have assets in both IRA and 401K and also have non-retirement assets. We currently both work and in our current home we have some equity. We just started getting collection calls not from Citibank but another collection agency named Penncro. The calls average about one per week, and for some reason they are calling my parents home and have not been able to reach us at our current residence. Here are my questions:

1) Does it make sense to reach out directly to Penncro to attempt to settle - or should we hire an attorney for this
2) At what point could our wages be garnished - would this take a lot of time and would we get ample warning before this happened?
3) How can we gauge where Penncro is at with their process are they close to getting a judgement
4) How exposed is the current home we live in and the non-retirement assets?

[espo1357]

My question involves a foreclosure in the State of: CA
Hello,

We recently foreclosed on our home and moved into what was then our rental property. To finance the purchase of the foreclosed home we took out two loans. Over time we refinanced the 2nd into a HELOC with Citibank (180K). We have assets in both IRA and 401K and also have non-retirement assets. We currently both work and in our current home we have some equity. We just started getting collection calls not from Citibank but another collection agency named Penncro. The calls average about one per week, and for some reason they are calling my parents home and have not been able to reach us at our current residence. Here are my questions:

1) Does it make sense to reach out directly to Penncro to attempt to settle - or should we hire an attorney for this
2) At what point could our wages be garnished - would this take a lot of time and would we get ample warning before this happened?
3) How can we gauge where Penncro is at with their process are they close to getting a judgement
4) How exposed is the current home we live in and the non-retirement assets?

Your post is confusing a bit, so please clarifiy. Here is what I can come up with based on the information you presented:

1. you don't need an attorney to settle. offer 5-10 percent and be willing to pay 15-20 percent. If they don't want to work with you, then consider a chapter 7 if you qualify and it make sense for you to dump a lot of debt. Chapter 13 stinks, and avoid it, unless you can "save" over 100k (my opinion).

2/3. You will get sued for the cc possibly, but not likely from a collection agency. They will try to make your life terrible, and harass (they are not supposed to, but that's is what they do). So, relax. You will have lots of time before garnishment, etc. Whatever you do, don't give out your bank information to them, and if anyone sues you, be sure to answer them, and give a response or else they can get a default judgement on the amount you owe.

4. I have no idea what you are asking.

Good luck.

[stress05]

Hi,

Thank you for your quick response.

1) We dont qualify for a chapter 7 and do not want to even entertain Chapter 13. We are willing to pay 20% but over time . Dont have 36K to shell over at once. Do you think getting a attorney would give us a better chance of getting the settlement we want

2/3) I am sorry.. a bit confused.. what cc will we be sued for ? they actually have been calling my inlaws and not us.. we have not got any letters in the mail either. So do you think maybe getting a strong letter from a lawyer and responding to them is a good start.. at least at that point they can not get a default judgment ?

4) basically can the creditors take our current house and our non - retirement assets from us with no warning?

thanks for your help

[espo1357]

Hi,

Thank you for your quick response.

1) We dont qualify for a chapter 7 and do not want to even entertain Chapter 13. We are willing to pay 20% but over time . Dont have 36K to shell over at once. Do you think getting a attorney would give us a better chance of getting the settlement we want

2/3) I am sorry.. a bit confused.. what cc will we be sued for ? they actually have been calling my inlaws and not us.. we have not got any letters in the mail either. So do you think maybe getting a strong letter from a lawyer and responding to them is a good start.. at least at that point they can not get a default judgment ?

4) basically can the creditors take our current house and our non - retirement assets from us with no warning?

thanks for your help

What bank or CA do you work for?

Anyway...

I think you are correct in getting an attorney to answer any lawsuit, indicating that you are going to contest the lawsuit, this will push back your case, and the CCC or collection agency will push back your case and likely not bother with you.

Can't you push all those non-retirement assets into protected assets?

Again I don't have enough information here.

Just keep gaining information on your options.

A 13 is not a bad play, especially with gas and food prices up, I don't think they are going to break you with the amount you will have to pay back.

Good luck.

[shark66]

Hi,


4) basically can the creditors take our current house and our non - retirement assets from us with no warning?

thanks for your help

No they can't. No one can take anything away from you without a judgment. And your assets are generally safe...

A "strong letter from a lawyer" will not get you anywhere.

If they have a case, they will eventually get a judgment providing that they actually sue you. An attorney could drag the process out for you, but could also end up costing you more than you'd gain by employing one in the first place...

They can put a lien on your house once the judgement is issued, but they can't "take it away" or make you sell it - big difference.

They can garnish your wages/bank account but I don't believe that your 401(k) can be touched.

Good luck.

[catleg]

Penncro is a garden variety "dial and harass" collection agency.
They bugged me about some credit cards for a while.
The problem is, if you want to settle with Citi, you need to get a letter in front of someone with authority to make a decision. Penncro isn't it.
You may have a tough time, if Citi realizes that you're not going to file BK on them, eventually they will sue you.