Line of Credit Settlement


Posted by xman on June 30, 2008 at 10:42:18:

Wow, I have a client who has been late on her line of credit for 10 months. It has now gone to collection and they agreed to settle for a much less amount. This was a purchase money second (loc). She is willing to settle as obvious as it would save her 90k. Sounds fishy to me. Does anyone know if she will be liable through a 1099 on the loss? Since it was a purchase money second here in CA I believe she would not have to worry about a deficiency. Any thoughts? Caring Agent.


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