Mortgage past statute of limitations

I realize that in my case, I'm almost certainly going to have to consult a lawyer, but I want to know as much about this as humanly possible.

Back in around 2001, my mother started to default on her mortgage. The last payment was made in November of 2002; no payments have been made since then, and no real attempts at collection have been made. There were occasional "bills" sent, but those eventually stopped, too.

At the time the house was going to foreclosure, the agent we spoke to said they lost the paperwork.

I live in Georgia, where the highest statute of limitation on ANY debt is 6 years...

I've looked at the deed, and the company that held the mortgage last (citifinancial) never recorded a deed... the last one on record is the previous company, before she refinanced.

I'm calling her tomorrow to pull up her credit report and see what we can find out about the debt, but given that there has been NO attempt, I'm thinking they've been unable to collect on this debt.

Now, if they can't collect, where does this leave ownership? The only company on record at the courthouse doesn't even exist anymore; What can we do to liberate this house from limbo?

Since there is a lien on the house, you will face problem selling your home or transferring the property. So you need to remove the lien on the property first and to do so, you need to contact your creditors and pay off the debts. Although the SOL has expired and the creditors cannot legally collect the debt, you have to pay off the debt to get the lien removed.

As far as I can tell... there IS no lien. There's nothing recorded at the courthouse at all from this company.

I also found this on my mother's credit report, and I don't understand it.

ACCOUNT INFO REMOVED
Balance:

Date Updated:
05/2009
High Balance:
$17,135
Terms:
$369 for 348 months
Pay Status:
Unrated
Account Type:
Mortgage Account
Responsibility:
Individual Account
Date Opened:
07/2000
Date Closed:
11/2000
Date Paid:
11/2000
Loan Type: Conventional Real Estate Mtg
Remark:
>Chapter 7 bankruptcy<
Estimated date that this item will be removed: 10/2007


I'd like to have this removed, but frankly, I don't want to poke the sleeping bear. I know they can't legally collect the debt anymore, but I'm still confused about this whole thing. This is the entry on her Transunion credit report in its entirety, including the blank after "balance". I don't understand any of it. The mortgage was for over 30k... not the amount listed here.

I'm gonna have to find a lawyer.

Are you talking about the repayment of refinance loan?

The thing is that, only the original mortgage account is reflected in your credit report and not the refinance account. Since you have paid off the original mortgage through refinance, the original mortgage is showing as closed in your report, but you are still delinquent on the refinance loan.

Are you referring to the refinance lender?

I would file a dispute with the Credit Reporting Agency(ies) on whose report(s) it still shows. "Estimated date that this item will be removed: 10/2007" is pretty clear and it should be no problem getting it removed, it may have just slipped through the cracks.

As for the deed issue, inquire with your local County Assessors Office.

YOu should double check your SOL, and don't group a mortgage in the same category as other "written contracts." Usually when real estate is involved, the SOL is a lot longer - like 20-40 years.

But it says the SOL right on the credit report.
Is "Remark:
>Chapter 7 bankruptcy<
Estimated date that this item will be removed: 10/2007" only for decoration?

That's when it will come off the credit report as per FCRA, but that's not the SOL.

Well, as I can see it, was Discharged in Bankruptcy, which most certainly makes it the SOL in this case. BK SOL takes precedence because there now IS NO DEBT to SOL!!

It's just like back taxes. Taxes are collectible until death (but it continues through the estate). However, if you can Discharge tax debt in Bankruptcy, it NO LONGER EXISTS, so the perpetuity SOL no longer matters, it is now 10 years for credit reporting only!

The OP will need to clarify this and check the BK papers to verify...