HELOC CHARGE off and SOL PERIOD ( Northern Virginia )

[Deepauk]

Hello Everyone,

I would request you to give me some answers to my problem.

I live in Northern Virginia. Took a loan to buy a townhouse which was priced at US $ 445,000/-  Loan was taken on July 2005.

I had two loans - ( Interest Only Loans )

a)     First Lender -               $ 356,000/-

b)     Second Lender -          $ 89,000/-

I was asking for help since 2008 to lenders since the First lender filed  BK and they could not modify the loans. I was laid off subsequently end of 2008.

Went into Foreclosure FEB 2009 ( County Records shows this ).  Foreclosed by the First lender. SECOND Lender sent a 1099 C  and shows as ZERO dollar in my CR.

BUT THE SECOND lender add the status as "CHARGED OFF" in my credit. ( CHARGE off date is recorded as Apr 2009 )

As the amount on foreclosure which did not satisfy the first lender and the second lender did not get anything out of foreclosure.

Now I get calls from a Law office which seems to be in collections for $ 89,000/- 

Already crossed three years and five months after foreclosure.  

This is my situation :

a)  What is the SOL period for HELOC Charge off in Virginia.

b)  Is there a way to settle this guy for some 5% or 10 % to get off my tail.

Please give me some answers and let me know how to proceed.

Thanks,

deepauk

[llecs]

I'm also a No. Virginian. IIRC, VA has a separate SOL for debt secured by real property, though without looking it up I can't recall what it is. The SOL in VA for written debt is 5 yrs and your SOL is likely matching that 5 yrs, if not then 6 yrs. 

Before trying to settle, try to have as much, if not all, of that saved if you are inside SOL. You wouldn't want to try to settle for a few thousand only to be sued for 100% instead.

Did you pay taxes on the 1099C? If they sold it to the CA, you wouldn't be liable for the taxes on that. They would be double dipping.

[Deepauk]

Thank you for the response.

Recently, I consulted an attorney and he states that do not settle unless the CA send you a letter asking for it. He also claimed it is 5 years.

But when i googled it says for Written Contract - 5 years and Promissory Note is 6 years.

When the second mortgage was tied to a mortgage note ( i.e Promissory note isn't it ) it should be 6 years. ( or 5 years.)

If we take attorney's word  then my understanding goes liek this - After foreclosure , second mortgage falls off the promissory note since the house is no more in my name and the loan becomes unsecured ( considered to be like credit card ) .. so it is taken under written contract .. i.e 6 years..

Does anyone agree to my point / understanding here..  ( i do not have $ 100,000 to settle )..

Thanks Again..

[IOBA]

Tell us a little more about the 1099 C you received from the second lender.

* for what tax year did you receive it?

* what dollar amount was listed?

What year was your townhome foreclosed on - 2008 or 2009?

[Deepauk]

I did receive a 1099 C on the second one..

year - 2008  ( Since Jan 2009 I was not in a situation to pay.. )

But my CPA told I do not have to pay since I was within the Bush's law parameters - homes foreclosed btw 08 - 2012 - tax was forgiven provided it was a primary residence.