Deficiency issues

[DanielF]

Greetings all,

Have a question, I had a first and second mortgage in 2006 and the house was foreclosed on. I filed BK 13 in 2007, but volutarily dismissed the BK to deal with the creditors. The bank was listed but did not file a claim in BK. I made arrangements with all other creditors and everything seemed to be ok until checked credit report yesterday and bank updated balance on second mortgage to 59k and in remarks stated it was C/O to collections. I am assuming I will be hearing from a collection agency sometime in the near furure and wondered if anyone had any advise on dealing with an issue such as this.

[RobertEG]

First, determine two things:  the date of first delinquency on the mortgage, after which you never became current (DOFD), and second, the date the SOL on the debt tolled or will toll.  Those two dates tell you your legal obligation to repay, and how long any reporting of a collection, regardless of when it has or will be reported, can remain in your CR.

You can choose to try to ride out those two dates.  Or you can attempt some sort of payment plan if you decide to make good on the debt.

Setting up a payment plan could be contingent upon agreement of the debt collector not to report to the CRA.  A lot depends upon how important it is to you not to have the collection in your CR for the term of its remaining 7 years plus 180 day period that remains from the DOFD on the OC account.