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Foreclosure after statute of limitations has expired?

Discussion in 'Ask the Attorneys?' started by nuitari, Feb 12, 2013.

  1. nuitari

    nuitari LoanSafe Member

    Hopefully this is the right forum, I apologize in advance if it is not.

    Here is my situation My first mortgage which originated in 2003 was sold to 3 different companies in 2 years. Each time there was a mess up with the payments not being properly forwarded to the correct company as I did not receive notice of the change until after the normal due dates. This was rectified fairly quickly and easily the first to times, however when the mortgage was sold to Chase it never got resolved. After 3 months they filed for foreclosure (approx. Jan 2005) the foreclosure suit was dropped after some intense arguments with our agent at Chase.

    However in April of 2005 Chase charged off the mortgage and refused payment until the account had been reassigned to another department. Needless to say over the course of the last almost 8 years I have received letters from a number of collection agencies regarding payment, however when I have asked them to provide proof that I owe them anything as I was assuming it was some sort of scam since I never received notification of the loan being transferred to anyone else they would stop calling for a number of months. Up until July of 2012 I had been hearing from Real-Time resolutions that offered a number of payoffs ranging from 70-80% of the amount left. As of August 2012 OCwen has apparently taken over the collection account, again will not verify the debt, in fact can rarely get a intelligible answer from their India reps, along with conflicting information, most times stating they have no record of previous contact.

    Long story short Ocwen has sent a certified letter to notify me of the potential of foreclosure proceedings, my questions are given that the statute of limitations has easily expired and they have refused to provide proof of the original debt what are my options?

    Given my current financial situation I would be unable to pay them more than 5% on $51,000 original debt and the $850 a month they have demanded in monthly payments is also more than I can afford.

    I should also mention that when trying to use their online resources I am told that I cannot apply for a loan mod under Hampa or anything else as the debt has been charge off, and all communication has been over the phone, nothing in writing to date. Also I am a Wisconsin resident.

    Needless to say in that time period my health has been less than stellar, due in part to bulging discs in my lumbar area which has cost me my job and I have been unable to find work for almost a year.

    Any help would be greatly appreciated.
  2. Kenupstate

    Kenupstate LoanSafe Member

    It is has been charged off I would tell them to send me a satisfaction of mortgage.Get anything you can in writing.You may want to consider a quiet title action
  3. moretrouble

    moretrouble LoanSafe Member


    Find a lawyer (maybe a probono or on contingent) sue them for violation of Federal Fair Debt Collection Practices Act. Obviously, they don't own and hold the NOte Note and has no right to foreclose.
  4. nuitari

    nuitari LoanSafe Member

    just a quick update Ocwen has just updated the account on their site. There is now an active link for that lists mortgage verification, although it simply lists the origination date of the loan, next payment date of 5/2005, payment amount, and total amount of the loan. Is this valid verification????

    Also there is still nothing after 6 months as far as the actual loan documents, just loan information if that helps.
    Last edited: Feb 13, 2013
  5. nuitari

    nuitari LoanSafe Member

    Just wanted to say thanks to kenupstate and moretrouble for your responses.

    Looks like a family member is going to try and take some money out to buy the property, so now just hoping we can negotiate a lower percentage than the remaining balance even though it is on a 1st.
  6. Kenupstate

    Kenupstate LoanSafe Member

    It sounds to me like you are still the owner,nothing to buy as you own it.I would suggest you look into a quiet title action,that would challenge the banks mortgage and they may not respond since if they charged it off they don't seem to care about it.

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