How do I respond to a lawsuit that is suing me for not paying the home equity line of credit? 4 Answers as of August 16, 2011I have a home equity line of credit on a house that sold 4 years ago .Now I am getting sued because I didn't pay it. Wasn't it suppose to be paid when the house closed? What can I do for a response to the lawsuit? Should I admit I signed all the docs but don't admit payments? Help?
The Grundy Law Firm, PLLC | Elvin Grundy
It is illegal in Arizona for a creditor to collect on a deficiency judgment after the foreclosure sale of your home if the property being foreclosed is a: (a) 2 acres or less; and (b) limited to and utilized as a single one-family or single two-family dwelling. Creditors outside of Arizona may be unfamiliar with the broad anti-deficiency statutes (See A.R.S. 33-729(A) and 33-814(G)). Competent and diligent legal counsel can challenge unwarranted deficiency judgments, and in some instances, recover attorney fees and damages when creditors bring meritless collections actions that fly in the face of Arizona's anti-deficiency statutes.
Answer Applies to: Arizona
Law Office of John C. Farrell, Jr. | John C. Farrell, Jr.
As part of the loan collateral was offered. If they are security interest holder then they can still come after you for any deficient amount. For example if you bought a car and defaulted on the loan they would first repossess the car then they would likely sue you for any amount that is still owed on the loan after the sale of the car. This is called a deficiency judgment. In the world of secured interest which is governed by UCC Article 9 the senior lien holder takes priority then everyone else waits in line with their hands out.
Answer Applies to: Massachusetts