questions & answers

Question: We got a HELOC and the loan was accelerated on Feb 28, 2011. Loan was sold to another company made the last payment on HELOC on 08/28/2012. We got a letter from new lender saying they charged off the debt on 05/08/2018. The letter also states “please be advised that we cannot bring a legal action to collect this debt or threaten to do so because the statue of limitations has expired. If you do make a payment, we may later be able to bring an action to collect this debt because the payment May start a new statue of limitations”. Has SOL run out, can they collect money if I sell home, 1099?

Answer: This question may only be answered by someone who has discussed your situation in detail with you and reviewed all the relevant paperwork. You should contact a legal and/or real estate professional to determine precisely what your rights and responsibilities are.