reneerose
09-10-2007, 10:37 AM
This will be a long story, but I need some advice. Two years ago my husband and I sold our first home. We had a first and a second on it (HELOC). Fast forward to beginning of this year. We kept recieving mail from the lender that had our HELOC saying that we owed an annual fee. My husband went into the bank and told them that we no longer owned the property and this account should have been closed. They told him that in order to close it we would have to pay a rather large fee or we could pay the annual fee and use it...since it was ours. So we did. Now the lender is coming back to us and asking for proof of insurance on this property. I called them and told them that we had sold it two years ago. Well they are now saying that we have a problem because there is still a lein on the old property. We have been making the payments on the HELOC, so it's not as if we are in default...They called this morning and it looks like it could get ugly fast. Our only options- according to them- are to pay off the loan right now (which we couldn't possibly do) Or to refinance our new home and include the HELOC into the new loan - but with the real estate market in decline (we are in N. CA) - I'm not sure that we have any equity at this point to do this. We did have title insurance when we sold the home, and they did pay the balance of the HELOC off when the home was sold... So my questions are - What are our options? Who is at fault? Why wasn't this caught during the sales transaction 2 years ago? Any advice would be appreciated. Thanks