What is the statute of limitations in California for a 2nd lender (HELOC) to go after a homeowner after foreclosure?
My home was foreclosed on over 4 yrs ago and I'd like to buy a new home. New lender says the HELOC lender I had on my home that was foreclosed on still shows a balance due on my credit report, even though it shows "charged-off". Last "reported" dated on credit report shows July 2014. Does that lender still have the right to collect? Can I ask them to update the record on my credit report to show zero balance, without the risk of having them start the collection process all over again? If they keep updating the "reported" date every month, when does the statute of limitations begin and end?
Was the HELOC in any way used to finance the property? If so, it may be considered a purchase money debt that may be ineligible for deficiency relief (meaning they might not be able to come after you).
Keep in mind that even if the statute of limitations runs out, this does not stop a lawsuit from actually being filed. If you are served with a lawsuit, you will likely want to raise the statute of limitations as a defense in your response.