Legal Question in Credit and Debt Law in Michigan

In 2005 a home equity loan was taken out in the amount of $20,000. I initially was current with my payments until which time I became unemployed. The loan was taken over by a Law Firm which I entered into an agreement to pay $100.00 per month. My last payment to the firm was in 2011. In April of 2011 a letter was sent to me from the Bank stating the loan had been charged off. I was contacted in April of 2015 by another bank stating they had purchased the loan. Today a forbearance agreement was sent to me requesting $500.00 and monthly payments of $100.00 until November of 2018 at which time the entire loan would become due via a balloon payment. What are my rights and options?


Asked on 11/23/15, 11:55 am

1 Answer from Attorneys
Andrew Campbell Andrew L Attorney at Law

There are not enough facts. A home equity line of credit - so there was a second mortgage recorded, correct? What is the status of that lien? Are you still in that same house? If so is it worth it? I would not know your rights until I saw the agreement you made with the law firm and understand all the important facts. Hopefully you have not made any promises to pay on this debt but I am curious as to why a forbearance agreement was sent to you. Did you request this? I would need to see all the letters sent to you and what exactly you said over the phone prior to this new bank entering the scene. I cannot really get into statute of limitations issues as I don't know if there is a mortgage or not.

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Answered on 11/23/15, 8:30 pm


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