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Posts: 18
Registered: ‎02-11-2011
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Mortgage collection statute of limitations?

I've got a question you've probably never had to answer before. I've sought help in various places; I know that ultimately, I need to consult a lawyer and get it cleared up one way or the other, but I still don't know what kind of lawyer to consult! I'm not even sure that this is the right forum to post in.

 

So here's the deal. 

 

Back in approximately 2001 or 2002, my mom defaulted on her mortgage. She told my husband and I that we could live here until the bank foreclosed. 

 

We called the bank to see if we could make payment arrangements, to which the bank was amendable... however, they had not yet received the paperwork. 

 

We called them monthly for 6 months, and every time, it was the same response. "We don't have your paperwork, it seems to have been lost in transit. Would you like to send a payment in anyway?". Yeah... no. Not sending you money when there's no account to apply it to, thanks. 

 

Fast forward to today. At the courthouse, there is no mention of the company the mortgage was sold to when the original company was bought. It's in the old company's name, and there's no record that I've been able to find ANYWHERE regarding the current mortgage. No payments or collection attempts have been made since then. 

 

The statute of limitations in Georgia for collection of a promissory note debt is 6 years. Going with the upper end of the date range... it's been almost 9 years. No mortgages. There is a property tax lien or two that we're paying on to keep the city from taking the house. 

 

Now. What do we do? Who do we talk to? My mother is willing to let us take the house, so I would act with her full legal authority (she'll be there to sign whatever). Is there a way for us to clear the mortgage from the courthouse, giving us title free and clear? As far as I know, this thing isn't even reporting on her credit report anymore (I haven't checked it recently.) 

 

This may be well beyond the scope of this forum... but I figured it couldn't hurt to ask. 


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Posts: 1,978
Registered: ‎04-07-2009
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Re: Mortgage collection statute of limitations?

I would check you mom's  credit report that may offer some help. Also If it reporting I would be interested in how it is reported.

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Posts: 3,626
Registered: ‎10-13-2009
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Re: Mortgage collection statute of limitations?


RedDragynLady wrote:

I've got a question you've probably never had to answer before. I've sought help in various places; I know that ultimately, I need to consult a lawyer and get it cleared up one way or the other, but I still don't know what kind of lawyer to consult! I'm not even sure that this is the right forum to post in.

 

So here's the deal. 

 

Back in approximately 2001 or 2002, my mom defaulted on her mortgage. She told my husband and I that we could live here until the bank foreclosed. 

 

We called the bank to see if we could make payment arrangements, to which the bank was amendable... however, they had not yet received the paperwork. 

 

We called them monthly for 6 months, and every time, it was the same response. "We don't have your paperwork, it seems to have been lost in transit. Would you like to send a payment in anyway?". Yeah... no. Not sending you money when there's no account to apply it to, thanks. 

 

Fast forward to today. At the courthouse, there is no mention of the company the mortgage was sold to when the original company was bought. It's in the old company's name, and there's no record that I've been able to find ANYWHERE regarding the current mortgage. No payments or collection attempts have been made since then. 

 

The statute of limitations in Georgia for collection of a promissory note debt is 6 years. Going with the upper end of the date range... it's been almost 9 years. No mortgages. There is a property tax lien or two that we're paying on to keep the city from taking the house. 

 

Now. What do we do? Who do we talk to? My mother is willing to let us take the house, so I would act with her full legal authority (she'll be there to sign whatever). Is there a way for us to clear the mortgage from the courthouse, giving us title free and clear? As far as I know, this thing isn't even reporting on her credit report anymore (I haven't checked it recently.) 

 

This may be well beyond the scope of this forum... but I figured it couldn't hurt to ask. 


I think the issue is more enforcement of a lien than collection of a debt.  In most states there is no statute of limitations on enforcement of a lien.  Technically they are not collecting on the debt, but just taking back their property.  If you want to stop the foreclosure, though, you can offer to pay them.  6 of one; half dozen of another.

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