Legal Question in Real Estate Law in Virginia

I sold a home through short sale in March 2011. I had an 80-20 financing arrangement. I settled the largest mortgage and the junior - a HELOC - was settled. On the HELOC I agreed to pay $5500 up front to get the lien released, then the note was transferred to another bank and I agreed to settle it for good with another $5500. The bank that got the note reported it on my credit report as a HELOC even though it was just an unsecured note. Are they allowed to do this? I have record of the lien release, the transfer of the note to the new bank, and a written agreement with them. They do not want to change how it's listed even though we've settled.

Asked on 11/09/13, 9:58 pm

1 Answer from Attorneys

Michael E. Hendrickson Attorney & Counsellor at Law

This makes no sense as to why this new bank would continue to show the

HELOC note on your credit report as still due and owing if in fact it's been "settled for good" and fully paid off. Something appears to be missing in your

recitation of the facts concerning this particular issue (in my opinion).

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Answered on 11/10/13, 9:20 pm


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