My HELOC has been turned over to a collection company.

UPDATED: Oct 1, 2022

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My HELOC has been turned over to a collection company.

The bank which holds the lien for my HELOC has turned my account over to a collection company. My account became delinquent but I have continued to make monthly payments. I am still able to make regular monthly payments, however now the collection agency is requesting a monthly amount that I can’t afford to pay. Soon, I will be able to offer a settlement amount on the outstanding lien balance but for far less than what I owe. If they do not accept the offer, is foreclosure the only option?

Asked on December 6, 2018 under Real Estate Law, North Carolina


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Yes, if they don't accept your offer, foreclosure will be the only option. There is no right to make them accept less than the full amount due on the loan, and once you fall behind on (are delinquient on) the loan, you are in default of your obligations and the entire loan becomes due. At that point, if you can't voluntarily work it out with them, they can foreclose due to your default.

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