Bank can't find original signed equity line of credit contract

[Franco Tirado]

I sure could use any help in here. I am working on refi my home and the lender needs all bank docs including a copy of my credit line agreement terms with my bank which is my 2nd and 1st is my home loan and totally different loaners.

Here is my story. Three or so yrs ago I went to my bank and got a line of credit using my home equity value. I got a loan for 40K. Then in less than 7 months I paid 30K meaning that at this point I only owe them 10K. Then five months later, or a year from when I got that loan for 40K, I decided to expand my biz and took a new loan for 100K.

That loan was merge with the first one meaning that out of a 140K loan now I own my bank 110K.
Now the man who is helping me with my refi who is my contract processing person called my bank that has my 2nd equity loan=140K asking for the signed contract and the terms, interest rates and all of that. He has been on this for 3 weeks now.

But somehow my bank, Washington Mutual, here in Northern CAlifornia. can only find the deeds/contract for the first line of credit for the original 40k and showing that 30k were paid and that I only own 10k.

Folks this is crazy but they can't find the contract that we agreed and signed for the 100K. NOBODY HAS GOT ANY IDEA WHERE those papers are. I sure dont have them and somehow I lost them or tossed them out. I figured they send me the monthly statement and I just pay it as it goes.

BUt now there is NOT PROVE of the terms of the note that I even got the 100k from them, that I agree to those terms or even how much of that money I had used so far. So my question is am I liable for such ineptness and continued paying when there is not a signed doc saying that I agree to any of their terms or that I even got a equity line of 100k from the bank?
Is that a stupidity that the bank will have to swallow? Why should me or anybody keep paying a loan where there are ZERO RECORDS TO IT. I had done nothing wrong and for sure BANKS HAD BEEN SCREWING US LEFT AND RIGHT. They can't keep their home in order and that is why we are in such a mess.
ANY ADVICES, besides, consult this or that attorney.

[onnakhanam]

We have an equity line of credit and just finished our bankruptcy case. During the bankruptcy, we came to find out the bank that has our equity loan does ... But when we signed the papers the girl did not notarize our signature in front ... there. can we get out of paying this since they can't find out documents or .

[SSandecki]

They can prove they gave you the money; just not provide the actual terms of the contract. Remember, Washington Mutual was bought by Chase and they are still in major transisition at this point. They will figure everything out soon enough; DO NOT stop paying off your loan.

[Callista Gail]

Credit Acceptance Corporation is a pioneer provider of a range of credit financing services to automobile dealers selling used automobiles to consumers considered high credit risks. Such consumers typically lack access to traditional sources of credit and automobile financing.

[Hosanna]

First of all, the first bank you will get a HELOC with will put a lien on your deed. You probably have a regular mortgage as well, so I assume there already is a lien registered on your deed.

When you try to get the second HELOC, the bank will obviously try to put yet another lien on your house and register it on your deed.

I don't think it is a good idea to do this without letting both banks know about the existence of the other. The second one will obviously find out about the first HELOC you already have and there is a good chance they will simply deny your application.

Bottom line: I would not do this if I were you. If you really need the money, you should try to talk to those two banks honestly. Don't think you can pull this one off without them noticing. They will find out eventually and you will get burnt.