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#2095040 - 08/24/16 06:26 PM Notice of Default HELOC
JAM Offline
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Joined: Aug 2005
Posts: 215
I don't deal with this often as we don't currently offer any consumer real estate secured loan products. However, there a a few HELOCS on the books from around 10 years ago.

We have a HELOC (1st lien) that was made to a husband and wife. At that time they lived in the home with their son who was also on the deed but not on the note (the loan was just to the mom and dad). Due to his ownership interest he was given a ROR at that time. Since then the husband died, the wife/mom moved out and now just the son lives there. The wife (only one on the note) has decided to stop making payments.

What communication can we/ should we have with the son since it is his primary residence and he has an ownership interest? It is not his loan so it seems like we shouldn't send him the notice of default or late notices. It is his primary residence so it seems he needs some notice prior to foreclosure. Maybe it is a state specific (CA) legal issue but any thoughts would be greatly appreciated.

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#2095077 - 08/24/16 07:32 PM Re: Notice of Default HELOC JAM
compliance 1999 Offline
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Joined: Jul 2016
Posts: 23
You need to look at California Civil Code 2920-2944.10. As the son is on the mortgage, he will need to received the notice of default and any foreclosure documents. The son should not receive late notices.

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#2095082 - 08/24/16 07:41 PM Re: Notice of Default HELOC compliance 1999
JAM Offline
100 Club
Joined: Aug 2005
Posts: 215
Thank you! I'll look over that CA code.

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#2095106 - 08/24/16 08:29 PM Re: Notice of Default HELOC JAM
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
I am guessing a default notice will prompt some mother-son conversation.
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