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SOL on REAL ESTATE

Date: Mon, 04/14/2008 - 09:31

Submitted by anonymous
on Mon, 04/14/2008 - 09:31

Posts: 202330 Credits: [Donate]

Total Replies: 7


HI, My parents lost their house to auction in 1991 after my father had a major surgery and was unable to pay on it. It was foreclosed on and then auctioned off.
18 years later, my father is getting phone calls from a debt collection attorney seeking over $36,000 but will settle for $18,000. Is that legal? My father was told that in 1991, the creditor should have shown up if they wanted their money and are not able to collect after the fact. I can't find what this would fall under for the
SOL. They never declared bankruptcy. Any help would be great.


Just a guess here, but 18 years sounds like it would be out of SOL pretty much anywhere. Also, since the house is gone at this point, I wonder if this would default to 'unsecured debt', rather than a moprtgage, etc. What state are you / your parents in, so we can check the state laws for you?


lrhall41

Submitted by unclewulf on Mon, 04/14/2008 - 09:39

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It sounds to me like the house was sold for less than the amount owed and the mortgage company charged of the balance. A dumpster diver got hold of it and ins now trying to get lucky. Who is the third party collector? Also I think Wulf is correct. This should be way pasy the SOL. Please furnish us with any info and tell your dad not to agree to anything for fear of restarting the Statute.


lrhall41

Submitted by Frogpatch on Mon, 04/14/2008 - 09:46

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I found this for MA SOL, I think it applies:
Claims on mortgage notes following foreclosure or on claims junior to a foreclosed mortgage: 2 Years.

However the mortgage itself would be classified as a debt instruments issued by a bank, which would be 20 years. Since, in this case, it falls after the foreclosure I would imagine that the 2 year SOL would apply.


lrhall41

Submitted by JCEMT on Mon, 04/14/2008 - 11:58

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I did some research on this company, apparently they are a collection agency, not an law office. The most common complaint was that of an agent which advises you that he has the power to "render a judgment against you" without a hearing in court, he also says that he will report your account to the credit bureaus and your score will drop by 300 points with the judgment. Which is not accurate to say the least.


lrhall41

Submitted by JCEMT on Mon, 04/14/2008 - 12:18

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