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  1. #1

    Default Foreclosure After Default on Line of Credit

    My question involves a foreclosure in the State of: CA

    We recently foreclosed on our home and moved into what was then our rental property. To finance the purchase of the foreclosed home we took out two loans. Over time we refinanced the 2nd into a HELOC with Citibank (180K). We have assets in both IRA and 401K and also have non-retirement assets. We currently both work and in our current home we have some equity. We just started getting collection calls not from Citibank but another collection agency named Penncro. The calls average about one per week, and for some reason they are calling my parents home and have not been able to reach us at our current residence. Here are my questions:

    1) Does it make sense to reach out directly to Penncro to attempt to settle - or should we hire an attorney for this
    2) At what point could our wages be garnished - would this take a lot of time and would we get ample warning before this happened?
    3) How can we gauge where Penncro is at with their process are they close to getting a judgement
    4) How exposed is the current home we live in and the non-retirement assets?

  2. #2
    Join Date
    Sep 2010

    Default Re: California Foreclosure - Default on Line of Credit

    You didn't foreclose, the bank foreclosed.
    Your refinanced loan is with recourse. They can certainly lien your home. They can get a writ of execution and suck your bank accounts and garnish up to 25% of your wages. 401(k)'s are not protected.

  3. #3

    Default Re: California Foreclosure - Default on Line of Credit


    thanks for your response. So what do you recommend i do now? i can not afford 180k

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