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Posted over 13 years ago.

Thank you Mr Austin, what are the chances that a collection agency woud get a judgment and a put a lien if in case I buy the new home as my primary residence, taking in consideration the heloc debt is $52k and in case they would put a lien what it would happen? would they try to foreclose my new home or the lien would stay on the property and after 4 years the statue of limitations would protect me and the lien would have to be discharged? Thanks again!

Michael Austin Hackard

Michael Austin Hackard Sacramento Litigation Lawyer

Posted over 13 years ago.

Collection Agency Judgment on Second Property. Collection agencies will pursue you if they think that there is something to get. You really do not have to respond to their questions, whether over the phone or by email.
Depending on the state in which you live I would think that a homestead exemption should protect your new equity in your home. This assumes that a lien is not in place at the time of the purchase of your home. If there is a judgment lien it place (there has been a judgment rendered already) in California judgment liens are effective for 10 years and can be renewed.
I hope that this helps to clarify your question.