I had 2 properties foreclosed (underwater) both had a 1st mortgage plus a heloc, the first one was forclosed on 2008 both loans were never refinanced "purchase money", however it been almost 5 years and I continue to receive a heloc statment increasing the amount every month, originaly debt was 73k now is almost 100k I believe the statue of limitations in CA is 4 years but as I said i continue receiving the statment higher every month. I had a 2nd foreclosure (2 years old) which was also my primary residence, on this one I had a heloc that appears in my credit report as "debt settle" and it was transferred to a collection agency, can they place a lien if I buy a new home as primary residence for my family? Thanks for your feedback!!
First I'll summarize what I think is your factual status and your question.
First Property: Foreclosed in 2008. Heloc on property was foreclosed out. Heloc is a written contractual obligation. The statute of limitations on a written obligation is 4 years from the date of breach. It appears that you are beyond the 4 years (assuming that you did not make any payments in the 4 years time). The Heloc debt on the First Property is likely barred by a statute of limitations defense.
Second Property: Foreclosed in 2010. Heloc on property was foreclosed out. Collection agency now owns the debt. Debt obligation is within the 4 years from date of breach.
Lien on Primary Residence. The only way for the debt collection company to record a lien is to first have a judgment (unless it applied for a prejudgment attachment). Even if it did this you have a homeowner's homestead exemption (amount depends on your age and marital status).
i hope that this helps you think about this issue.
This is a general answer only and you should seek the advice of counsel to address facts specific to your circumstances.
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