what is a charge off?

[TEW]

Will a bankruptcy make the lien holder who charged off the loan also RELEASE THE LIEN since the debt will never be paid, just discharged in the bankruptcy???

I think you are talking about secured credit. If so the debit is still secured by the asset.

[beachymama]

I think you are talking about secured credit. If so the debit is still secured by the asset.

Well, the HELOC is on a home, but the value, thus the security is no longer there. They are in the second position, behind the first mortgage holder. The reason they charged off the account was because there was no equity to foreclose on.

So, I was wondering if bankruptcy or ONLY FORECLOSURE? is the only way to get this lien off the home so that I can sell it in a short sale? or move back into it and try to reaffirm the first mortgage, but remove any future judgements by the HELOC company including the lien.

Thank you!