Foreclosed HELOC Still showing on credit report

Discussion in 'Credit Talk' started by dslhun, Feb 18, 2014.

  1. dslhun

    dslhun New Member

    Hi everyone,

    I'm new to this forum and thought it to be a good place to get more information on this. I was foreclosed on back in 2011 and still have a balance showing on all three credit reports in the amount of the HELOC. Two bureaus are reporting it as an open and current installment account which skews my score badly as it looks like I have a credit card with an almost maxed out balance. How do I get this removed or corrected? I have filed disputes in the past and even used Lexington Law but nothing has been done about this balance showing...
  2. mijd

    mijd Well-Known Member

    More information is needed in your case. Was your HELOC the only lien on your property? If the HELOC initiated the foreclosure and you had a primary mortgage, the proceeds of the sale should go to the primary mortgage holder first and any leftover funds would go to payoff the HELOC. If there is a deficiency judgement, with the primary mortgage after the home is sold, the HELOC would then become a unsecured debit similar to a credit card. The above is from personal experience with a short sale and doesn't always apply in every situation.
  3. dslhun

    dslhun New Member

    Thanks for your reply mijd. The HELOC was the second mortgage used in purchasing the property. The same company that provided the primary mortgage also provided the second. The 1st mortgage balance at the end of 2011 when the home foreclosed was approximately $109,068.01. The bank purchased the home for $118,383.71 and the remaining $9315.70 was not applied to the second. In addition to that, regardless of having paid on the second mortgage for 8 years, the balance showing on my credit is reflecting the full HELOC original amount.
  4. daisydalla

    daisydalla Member

    that's crazy i wish i was able to help you, I this company who has awesome service and helped me repair my credit they also provide me with free information you might find them useful good luck hun. number is 855-728-4009 i believe its toll free.

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