Federal law for Heloc Chargeoff

zcflyfish

LoanSafe Member
Sep 18, 2016
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0
1
I am attempting to get a conventional loan for an investment property (for my parents to live in). I have a Heloc on my primary residence that I didn't pay in 2013. All 3 credit reporting agencies list my Heloc as a chargeoff in the 2nd half of 2013. However, I never received any documentation from the Heloc lender indicating a chargeoff. I understand I am still responsible for the debt. The Heloc is not the same lender as the 1st mortgage. I understand their is a 4 year waiting period under Fannie Mae guidelines after a chargeoff. However, the new lender is requesting documentation from the Heloc lender/servicer of the chargeoff, which I never received and I can't get seem to get a direct answer from servicer.

Is there a Federal lending/retail law that requires lenders to chargeoff a Heloc after so many days of non-payment? Any other thoughts? I am trying to find a way to satisfy the new lender.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,066
162
63
San Diego, California
www.loansreduced.com
You shouldn't need any documentation on the charged off lien (as it's older than 4 years), especially if it's for a property unrelated to the subject property. Feel free to contact me if you need me to handle the loan, I deal with charged off liens all the time - Erik Sandstrom, 619-379-8999. [email protected]
 

zcflyfish

LoanSafe Member
Sep 18, 2016
4
0
1
From what I gather online, it would be appear there are Federal laws that require lenders to chargeoff a mortgage after 120 days of delinquency. Perhaps others could clarify or validate.
Erik, thanks for your reply. I will follow up with you if I run into any further delay or issue. Thanks!
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,066
162
63
San Diego, California
www.loansreduced.com
Sounds great, there are many loan officers and even underwriters that most likely haven't dealt with the situation before and may cause issues. I'd be happy to go over a quote with you, if you haven't ordered an appraisal yet and are already identifying issues - you may want to run from that company.