Expert: Terry Leeders - 6/17/2008

Question
HI: I have a mortgage and a Home Equity Line of Credit. I filed Chapter 7. I am not in foreclosure and don't plan on being. I am up to date with mortgage and home equity loan. Indymac has charged my account $145 for supposedly a "drive by" appraisal. My home is worth approximately what I owe on it. (I'm in Florida.) Called Indymac and told them that I am not in foreclosure.  Question is: Should I continue to pay on home equity loan as it is a line of credit?  I do not want a lien on homestead. Thank you. Mary

Answer
Home equity loans & lines of credit are lien's against the property.  They have the right to charge reasonable collection fees, appraisal fees, attorneys fees pursuant to all that small print in the contract you signed with them.  Even if you are current, these costs are considered reasonable.  Your lenders should provide your lawyer with a reaffirmation for each loan, which says you want to 'stay on the hook' for these debts, so you can keep the property.  Stay current on all payments on both loans and you will be just fine.  You cannot discharge the home equity line of credit in bankruptcy, unless you are surrendering the property.