Posted by Nate(DC) on December 30, 2001 at 15:45:49:
The fact that the line is closed has nothing to do with the issue of whether or not it can be called due. “Closed” simply means that she can no longer draw on the line of credit - which is a moot point, since she has drawn the maximum amount anyway.
I would suggest that you get from her (or from Homecq if she doesn’t have them) the documentation she signed when she opened the line of credit. I would be there is language in there stating that it can be called due at any time for any reason, and that this right is not terminated if the line is closed.
However, I would think this would be treated like any other mortgage - i.e. if it’s current, they’ll leave you alone. Maybe if the back payments are made up you will feel more comfortable leaving it in place. How much equity is in this deal anyhow?