Short sale property in Georgia in 2014 and HELOC placed in collection 4/2016. Relocated to CA in 2007 and purchased a primary home in CA in 2010. Can collection agency now seek any judgement or lien attachment on unpledged CA property.
I cannot comment on Georgia law and whether they have non-recourse loans, but assuming they do not, it is possible for the bank to sue you on the loan, and obtain a personal judgment against you. That Georgia judgment can be domesticated in CA. Pursuant to the judgment, the bank could attach your personal property (e.g., bank accounts) and real property in CA to collect on their judgment.
The issue (Theodore hit the nail on the head) is whether the mortgage limited the lender to looking to the property only or if the lender was able to look to you personally for repayment. I.e. was it a non recourse loan?
Most purchase money loans in California are non recourse loans. Lines of credit (your HELOC) may well not have that limitation.
More importantly, what matters is the law in GA. If they have a GA judgment against you, they have the right to move it to California and pursue every legal way to collect it against you including a lien on your California property.
You probably need to talk to a GA lawyer and see if you can set aside the judgment in GA.
This answer is not intended to provide legal advice and you should always consult a qualified lawyer in your state who has had the opportunity to discuss all aspects of your matter with you and review all applicable documents before making any decisions on your matter.
Our Rating is calculated using information the lawyer has included on their profile in addition to the information we collect from state bar associations and other organizations that license legal professionals. Attorneys who claim their profiles and provide Avvo with more information tend to have a higher rating than those who do not.What determines Avvo Rating?Experience & background
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline