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  1. #1
    Join Date
    Jan 2011
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    4

    Default Collection Agency for Chase HELOC

    My question involves collection proceedings in the State of: California

    Hi, I'm a new member here..and hope someone can help me answer a few questions.

    I have this collection agency contacting me for charged off Chase HELOC account ($57,000) and want me to settle with them for 50% (28,000) which I don't have. I offered 10% (5,700) and off course they don't agree.

    1) What is the worst thing they can do to me? Sue? wage garnishment?

    2) I wrote to them asking for the original loan documents from WaMu (now Chase) with my signatures and asked them not to call untill then. But they haven't send me any so far. Can they collect without those documents?

    3) What if I short sell my house? would it go away or they'll keep bugging me?

    I actually am thinking about short selling it cuz I owe 422K and house value now is under 300K.

    Thank you in advance

  2. #2
    Join Date
    Jul 2010
    Posts
    8,006

    Default Re: Collection Agency for Chase HELOC

    Quote Quoting seatownz
    View Post
    1) What is the worst thing they can do to me? Sue? wage garnishment?
    Pretty much that's it. Oh and putting it on your credit report. Getting a judgement and putting it on your credit report as well...making your credit slightly better than Octomom's.

    Quote Quoting seatownz
    View Post
    2) I wrote to them asking for the original loan documents from WaMu (now Chase) with my signatures and asked them not to call untill then. But they haven't send me any so far. Can they collect without those documents?
    They can try. To prevail in court, if you show up and fight, they would probably have to have them. If you don't show up if they sue you, they will get a default judgment most likely without ever having to produce much, if any, evidence.

    Quote Quoting seatownz
    View Post
    3) What if I short sell my house? would it go away or they'll keep bugging me?
    Yup, they'll keep "bugging" you. The debt doesn't magically disappear if your get rid of your house.

  3. #3
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Collection Agency for Chase HELOC

    have you received your 1099 for the charged off $57000 yet? When you do, you will have to pay income taxes on that money. That will be a major chunk due to the IRS for a $57000 bump in income for the year.

    You might consider the tax implications when trying to figure out what to do with this.

  4. #4
    Join Date
    Jan 2011
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    4

    Default Re: Collection Agency for Chase HELOC

    Quote Quoting free9man
    View Post
    Pretty much that's it. Oh and putting it on your credit report. Getting a judgement and putting it on your credit report as well...making your credit slightly better than Octomom's.



    They can try. To prevail in court, if you show up and fight, they would probably have to have them. If you don't show up if they sue you, they will get a default judgment most likely without ever having to produce much, if any, evidence.



    Yup, they'll keep "bugging" you. The debt doesn't magically disappear if your get rid of your house.
    thanks for the reply..
    I forgot to mention that Chase also have lien on the house.. probably doesn't change anything, right?

    I was thinking that second (HELOC) was already written off as a loss with Chase but that collection company will be notified that I'm doing a short sell...then they will just go away.(wishful thinking?) The first mortgage company (Indymac) might offer them certain amount of dollars to release their lien position...etc...

    Quote Quoting jk
    View Post
    have you received your 1099 for the charged off $57000 yet? When you do, you will have to pay income taxes on that money. That will be a major chunk due to the IRS for a $57000 bump in income for the year.

    You might consider the tax implications when trying to figure out what to do with this.
    No, I haven't receive the 1099 yet.. I think I'll get it after I reach agreement on settlement with them.. am I right?

  5. #5
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Collection Agency for Chase HELOC

    You can't short sell without acquiescence of all the lenders (at least no sane buyer would by a short sale that still had a $70,000 encumberance on it).

  6. #6
    Join Date
    Jan 2011
    Posts
    4

    Default Re: Collection Agency for Chase HELOC

    I haven't heard from them (collection agency) since I requested documents from them. Why do you think is that? Been over a month now without letters or calls from them.
    Should I request again, this time with certified mail?
    Maybe it does take some times to get it from Chase, cuz I heard when WaMu became Chase there were alot of loan documents got lost.
    Anybody knows anything about that?

  7. #7
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Collection Agency for Chase HELOC

    what documents did you request? If it's these:

    2) I wrote to them asking for the original loan documents from WaMu (now Chase) with my signatures and asked them not to call untill then.
    don't hold your breath. They have no obligation to provide them until/unless they sue you and you demand them in court.

  8. #8
    Join Date
    Jan 2011
    Posts
    4

    Default Re: Collection Agency for Chase HELOC

    ok now I get some idea of all the things that they can do to me.. any idea what I should do??
    I sure don't have the amount they're asking to settle and they are not accepting my offer.

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