Second mortgage hasn't reported in 3 years

[Anonymous]

I went through a foreclosure in 2008 and the home was sold at auction in October of 2008.  Prior to that I had a second mortgage that I stopped paying on.  The second mortgage was bought and sold a few times until it landed with Real Time Resolutions in Jan 2008.  Real Time Resolutions did not report it as a second mortgage, but as Conventional Real Estate Loan, Including Purchase Money First.  They also last reported on the account in July of 2008.

Since there hasn't been any activity on the account for nearly 3 years, what can I do?  Is the debt still valid?  Can I dispute it?  I have slowly rebuilt my credit and hope to purchase a house next year and I am concerned that this account will keep me from getting a loan.  This account is also ONLY listed on my Experian report, not on Transunion or Equifax.

Thanks...

[llecs]

Welcome to the forums!

I don't know the answer with regards to approval and that second. I just asked a parallel question over in Mortgage Loans about just that. I'm not familiar with the process. My gut tells me that it would have to be paid first, but I'll defer to others over there.

Legally, I can say with some certainty that you are still on the hook for it. Your state has laws that govern how long you are legally obligated for it (found in your state's statute of limitations). I bet it is still inside SOL. If I had that, without knowing more, I certainly wouldn't touch it. Doing anything like disputing, writing letters, etc., can get you sued. Make sure you have the $$$ saved up to pay it if you had to before doing anything. Did the sale of the house cover the first and second mortgage? Or just part of the first?

[Anonymous]

It did not cover it... it fell short by about $60k, so I typically would assume I would be on the hook for the second mortgage as well... but since they have not reported anything in almost 3 years I questioned it.  Also, since it is being reported as a Conventional Real Estate Loan now (was Second Mortgage at the prior owners of my loan) I thought that there may be different rules around it.

I am doing just as you suggested, not touching it.  I will be going through my Credit Union next year for a conventional loan and they only use TransUnion, so this blemish should not even come up... but I will keep it in the back of my mind to be prepared to pay it if needed.

Thanks.