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2nd Mortgage Not Purchase money loan statue of Limitations

Discussion in 'Bank of America Mortgage Help' started by Jasgal, May 8, 2013.

  1. Jasgal

    Jasgal LoanSafe Member

    Im not sure this is the correct place to posting this question, but here I go.

    Home was bought in 2005, refinance in 2006. had a 1st mort for 270,000 and 2nd for 90,000 (HELOC). In Dec 2008 house was forclosed on by the 1st. last payments made on either loans was May 2008. Home value was no where near the amount owed. Can anyone give me any clearity on the statue of limitations on the 2nd.

    thank you
  2. RexMorgan

    RexMorgan LoanSafe Member

    It varies by state. What state are you in?

    Rex
  3. Jasgal

    Jasgal LoanSafe Member

    California, sorry i completely forgot to put that down
  4. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Hey Jasgal,

    From my understanding the statute of limitations in CA is 4 years (in some cases 6) so they may now be legally barred from filing a lawsuit..
  5. RexMorgan

    RexMorgan LoanSafe Member

    I think the SOL is about lawsuits. They won't be able to sue you for it. But i think they can legally try to collect (by calling etc.) and ding your credit for up to 7 years from the foreclosure per the federal fair credit reporting act (or whatever it's called).

    FWIW, if you're interested in researching your situation some more, your second is what is called a sold-out junior loan (SOJL). If you search the forum for SOJL there are a few threads with a lot of info on on them.

    Rex
    Last edited: May 8, 2013
  6. Jasgal

    Jasgal LoanSafe Member

    Thank you so much for the information it helps out alot.
  7. Ready2Run

    Ready2Run LoanSafe Member

    A cease & desist letter will stop the calls / collections attempts. Regardless of if you settle or not the derogatories will still show on your credit report. Settling will only change the derogatory to show that it's been settled rather than opened. This can make a difference in some situations although your already 4.5 years into the 7 year + 180 day limit. If it's worth settling will depend on your needs but it won't remove the derogatory.
  8. Jasgal

    Jasgal LoanSafe Member

    Well there would be no way to settle at all right now. with cut backs at work and having an child with autism to care for my priorities are in other places. I have to put my son first. But being prepared for the calls and letters is really what I am doing
  9. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Yes they will no longer be able to file suit once the statute of limitations has expired..
  10. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    I agree with Ready2run, now that you are already 4+ years there's no point in attempting to settle this account because they cannot come after you for this debt. The 4-year period would begin from the date of your breach, which is usually the date you made your last payment to the lender.
  11. Ready2Run

    Ready2Run LoanSafe Member

    Just sent a C&D letter asking that they no longer call. Since you are in California it will have a bit more power than other state. For example, it even applies to original creditors due the to California's Fair Debt Collection Practices Act.

    Per the website: "If you want to stop all contact from the agency you may request that they not contact you again. This request MUST be in writing. We suggest that you mail it certified, "return receipt requested" so you have proof of its delivery. Once the agency receives your letter, its employees can only contact you one final time to explain what action they plan to take. After that, contact must stop."
  12. Jasgal

    Jasgal LoanSafe Member

    Again, I want to say thank you so much to those who take the time to help others here.
  13. Jasgal

    Jasgal LoanSafe Member

    I would like to ask if anyone here can let me know if they have been sued for a 2nd mortgage that the statue of limitaions has expired and how did it go? Also if a collector calls me for this do I tell them to leave me alone and the statue of limitations have expired?
  14. Cat Damiano

    Cat Damiano Mortgage Wars

    Be very careful when speaking to anyone, which is something that you should not do. The following had helped me in understanding how to handle this;

    The most important thing is not to say or do anything (whether on the phone or in a letter) that in any way acknowledges that you owe the debt. Acknowledging the debt or making even a token payment can extend or revive the statute of limitations in some states. (For more on dealing with debt collectors, see Nolo's article Dealing With Collection Agencies FAQ.)
    [h=3]Be Careful Not to Waive, Extend, or Revive the Statute of Limitations[/h] If you claim that the statute of limitations prevents a collector from suing you for a debt, the collector might argue that you have waived, extended, or revived the statute of limitations in your earlier dealings.



    Time-Barred Debts: When Collectors Cannot Sue You for Unpaid Debts | Nolo.com
  15. Jasgal

    Jasgal LoanSafe Member

    So I am best off doing nothing (talking or letters) unless they try to serve me? At that point highering a lawyer would be best to handle it. I have been getting calls from a company Portfolio Recovery (I googled the number). I wont answer and they are not leaving a message. Trying to think of any old debts and this is the only i can think of. Thought of checking my credit to make sure but i am also wondering if i check my credit does that send the red flags i checked my credit? (probably a stupid question).
  16. Cat Damiano

    Cat Damiano Mortgage Wars

    Everyone has their own tolerance level and that would be a decision that only you can make. The article helps with this direction since you already know that you are beyond the statute of limitations in your state. I was bothered by Portfolio Recovery when I was not outside of the limitations in my state for a 22k deficiency on an auto voluntary repo and I just ignored them and eventually the debt went to 6 more CAs over the span of 4.5 years, and I ignored them all, the statute is 6 years in my state for that type of loan. I finally received a 1099C and filed it with my taxes for 2012. Which for me was a relief due to the fact that I was insolvent at that time.
  17. Jasgal

    Jasgal LoanSafe Member

    You know that you mention the 1099C i know I had one sent to me the yr 2009 to do my 2008 taxes, but i never knew if it was from the 1st loan who foreclosed or the 2nd. was always scared to even ask. Both loans at the time where with the same company.
  18. Jasgal

    Jasgal LoanSafe Member

    quick question: does checking your credit trigger collection agencies? might be stupid for asking but just wondering
  19. Cat Damiano

    Cat Damiano Mortgage Wars

    I am not sure what you mean, but if you are asking by you checking your credit report will that prompt them to call, I don't think they would be able to see that you pulled your own credit report.
  20. Jasgal

    Jasgal LoanSafe Member

    I told you it probably was a stupid question, thank you :)

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