I suggest you consult with a lawyer experienced in fighting foreclosure. Immediately! If the sheriff's sale actually occurred, you really have an uphill battle. But you may still have some rights. You can find a good lawyer in your area at www.naca.net.
1. Can the bank continue to monthly report a charged-off HELOC on a foreclosed house in Michigan?
Yes. The home equity lender would be permitted to report derogatory, if the loan is in default or otherwise not current. This is true even though they charged off the account.
2. How can I clear this debt from my credit report, or at least prevent the bank from continuing to report it?
Charged off debts are generally much easier to resolve than non-charged-off debts. Some creditors...
There's a lot you can do. If you are not notified of a debt you have a reasonable argument that it should not be reporting as delinquent. You need to contact an attorney who specializes in The Fair Credit Reporting Act. That attorney will review your credit report and circumstances to see if a violation of the law occurred here. That attorney will also assist you in resolving the debt in an amicable fashion. This is an issue which I suggest you take action on immediately.
It sounds like you received a dunning letter. Ms. Adams is correct, you should immediately send a validation letter by certified mail to the debt collector. If this is a junk debt (where the debt collector purchases the debt from the original for pennies on the dollar), you potentially have multiple defenses. I suggest you also show the dunning letter to an experienced consumer protection lawyer in your area and discuss your options. You can find a good lawyer at www.naca.net
It appears from your post that you have a law firm representing you. If the "law firm" you are referring to is the foreclosure law firm or bank law firm, you should hire a lawyer to represent you in this important process. Deeds in lieu include complex language and have significant effects on your credit. I suggest you arrange a consultation with an experienced lawyer before you sign anything.
The next letter you will receive is a MCL 600.3205b letter which will permit you to elect to "meet" a representative to negotiate a loan modification. You will have 14 days to respond to this letter. It is critical that you contact the sender within those 14 days. It will delay the process for weeks or months. Depending on your goals, (loan mod, walk away, bankruptcy, short sale, deed in lieu, other), you should contact an experienced stop foreclosure attorney immediately. You must not let...
I suspect that court permits a telephone appearance. You can call the civil clerk to confirm this. The bigger issue is that you were sued in the wrong jurisdiction. This alone may be a violation of the Fair Debt Collection Practices Act. You should contact an experienced lawyer immediately to discuss a potential counter suit against the debt collector, or a Motion to Change Venue. You can find a reputable consumer lawyer in your area at www.naca.net
If the sheriff's sale was expunged and they continued to advertise the property as if it were foreclosed, you may have a case there. You also could have some other claims there. Of course I would need to see all related documentation and have a consultation with you to see if a meritorious cause of action is available. You need to speak with an experienced attorney who specialized in stopping foreclosure.
Good work on getting the Judgment set aside. Your hearing on March 22 is likely a pre-trial or settlement conference. You should absolutely hire an attorney who is experienced in the debt collection laws. I would be happy to speak with you and provide you with a free consultation. You can view my contact information at www.myfaircreditsite.com.
Please be advised that the above response does not constitute legal advice. The answer is provided for informational purposes only. You must make...