Established Member
Posts: 35
Registered: ‎09-14-2012
Defaulted HELOC, only negative on report

We had to move out of state over a year ago.  Within a month, we had a contract on our house.  Bank of America would not process short sale without a default to show hardship.  They take a very long time to approve short sales.  I am now over 1 year in default, but the house is finally going to close.  I am not on the mortgage note, just on the HELOC. The balance is $150k.  Bank of America holds both the mortgage and the HELOC and we have short sale letters for both loans.  They are paying off the HELOC at $6,000.  I'm pretty sure that this is going to show as a charge off.  I have a long and excellent credit record, except for this.  Will my score improve or will the charge off look worse?  

FICO 715 FAKO 739
Chase Freedom 14,500
Chase Slate 6,700
US Bank 14,500
Discover 15,000