Defaulted HELOC, only negative on report
09-14-2012 04:13 PM
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?