I found this forum a few days ago after getting swamped with chase pre-approved credit cards. Well, now I need to get serious and hope to find out about what's really wrong with my credit.
In 2006 I was the primary borrower on a $25,000 HELOC (Bank of America) while living with my stepmother in Massachusetts. My stepmother, who was the secondary borrower, used her condo as collateral. I took out the loan to pay off about $15,000 of her bills-she never paid a dime on the loan. A few months later BofA asked me what line of credit I would like. For the heck of it I said $125,000 and they gave it to me. I was awarded the line increase in April 2007 and maxed it out. I was never on the title and am baffled as to how I obtained this loan. I guess my credit was good at the time, I had savings, no debts, and a $50,000 tax-free disability income. I returned to Oregon later that year and returned to my gambling addiction. I spent over $100,000 on gold and sold it at a loss in 2009, just before the market skyrocketed. I signed the proceeds over to a VA fiduciary who paid off several credit cards and two cars with it. She was indicted for fraud earlier this year and is currently facing federal charges in Oregon. I entered gambling treatment in September after years of outpatient therapy. Finally, at the age of 53, I seem to have a handle on my illness (I'm also bipolar on VA and Social Security disability).
Until this year I only made the interest payments but now am working on the principal ($500/month). The balance is currently $116,000 and the account was suspended by the bank years ago. It's been delinquent several times, most recently in September 2013. I haven't spoken to my stepmother in many years and have no contact with my family back east. Yesterday my gambling addiction therapist helped me do a title search at the request of my new VA fiduciary, appointed because of my gambling problem. (the VA won't let me handle my check due to mental illnes and gambling addiction). She won't continue to pay the loan if I'm not on the title, and I'm not. To make matters more interesting, the county where the condo is located seized the title due to non-payment of taxes in 2011. The HELOC was the first mortgage on the property, so I assume BofA holds a lien as well. If I don't pay the LOC my credit goes to crap and I've worked hard to stop my compulsive gambling and spending. I'm too old to mess around but don't want to spend the rest of my life making $1000 monthly payments that I'm facing in a couple of years when the LOC goes into repayment. I checked the interest rates and they soar during that 15-year period, much higher than 15-year fixed mortgages. I have already had cancer (over 5 years ago) and will continue to battle bipolar disorder the rest of my life. My 50K disability income is permanent and I pay $750/month for a small apartment in a no-frills retirement home in Oregon. I hold the title to my car with 80,000 miles on it (2011 Kia). I have six credit cards with a 10K total CL and current balance of less than $500. My credit score is around 700 despite my checkered past. I have a long history of maxed out credit cards, settlements and other problems that were caused by poor financial decisions. My illness played a big part of it but I am responsible for what I have done and am living in a budget now.
So I don't know what to do about the line of credit. Do I keep paying it? Do I default? I don't know if my stepmother is alive or still lives there. This subject is emotionally painful as well as a financial burden, but I am responsible for it. I have the income to pay it and just live a basic life.
Any response would be welcomed.
Thank you for reading.
