Benny L. Kass Mailbag

When home equity line of credit not wanted Q:My husband and I refinanced our condo in December 2007 with the existing mortgage company. In addition to the refinance, the lender opened a $250,000 home equity line of credit for us, although we never requested this, were not aware of it, and certainly never signed documents agreeing to it.

We are planning to refinance another property this month and are concerned about the impact that a $250K line of credit (although not at all used) may have on our credit reports. I have contacted the lender three times in the past 30 days to close this account, because we never signed papers for it, but am running into a wall, with someone always acknowledging that they don't have signed documents and promising that they'll "research it" and asking me to call back in seven days.

What is my recourse if the lender will not resolve this and close the account? Isn't it illegal for them to open this account without our agreement? -- Angelique

Answer: I am at a loss to understand how the lender put a loan on your home without your knowledge. I suspect that when you went to closing, you signed a bunch of papers, and one of them may have been that loan. While you may not have been advised of this, if you look at all of the loan documents, you will probably see the loan papers.

Regardless, have you confirmed with the second refinance lender that the loan will be a problem regarding your credit standing? Although lenders are much more strict and conservative nowadays, if you explain that you did not ask or want that loan, your new lender might be willing to make you that refinance loan.

If not, I suggest you contact your local consumer-affairs office, as well as the banking commissioner in your state. You may also consider sending a complaint to the Federal Reserve Board in Washington. Send your lender copies of all your correspondence. That often gets their attention.

Q:I have a close relative living in a house that I am buying. This person has paid rent and utilities just four times in the past 17 months.

What steps do I need to take to have this person evicted? I would like to know if there is a "conditional eviction" in which the person's belongings would remain intact until he was able to secure them? I am not eager to place the person's belongings on the street. -- James

Answer: If you are buying the house, you should demand that your seller either take all appropriate action to evict the tenant, or at least credit you at closing for the back rent.

Every state has different procedures for evictions. You or your seller should be able to go to the appropriate landlord-tenant court in your area and get a judgment of possession. Getting this judgment does not mean that you actually have to evict and have the personal belongings thrown out on the street.

Once there is a judgment, you or the seller should explain the situation to the tenant and give him a certain number of days in which to move out. Otherwise, he will be evicted and possibly lose everything that he has.

One further suggestion: In your negotiations with the seller, try to get some money to pay for a lawyer to take the tenant to court. This can cost several thousand dollars.

Benny L. Kass is a practicing attorney in Washington. Questions for this column can be submitted to .