Time limitations?

[Confusion Says]

What is the name of your state (only U.S. law)? OHIO

Years ago I took out a 2nd mortgage on our home for repairs. Later down the road we ran into financial trouble after I was seriously injured in a car accident. We didn't pay the loan back for months, then when I was able to catch up and tried to pay, they told me the loan was charged off and no longer existed. They would not, or could not accept my payments. It even disappeared from my credit report. My husband became seriously ill in 2010 (passed away this past March), and during another financial setback due to his long term illness and disability, we were foreclosed upon. Though we got out of it at the last minute, the courts tried to contact this loan agent (CitiFinancial) and they never answered to the court. We were told that means they released any interest in the home and any money in regards to the original loan.
The other day I received a bill from them, the last contact from them was 2008! They now demand their money ($15,000.00 and some odd dollars)

Legally do I still owe them? Are there any time limitations on loans such as this?
And why can they/why want my money now when they wouldn't accept it, or wanted it when I tried YEARS ago to make payments?

How can they just re-appear after 6 years, and not answering the court during our foreclosure and never having sent a bill in 6 years?
What are my options and what should I do?

 

[quincy]

What is the name of your state (only U.S. law)? OHIO

Years ago I took out a 2nd mortgage on our home for repairs. Later down the road we ran into financial trouble after I was seriously injured in a car accident. We didn't pay the loan back for months, then when I was able to catch up and tried to pay, they told me the loan was charged off and no longer existed. They would not, or could not accept my payments. It even disappeared from my credit report. My husband became seriously ill in 2010 (passed away this past March), and during another financial setback due to his long term illness and disability, we were foreclosed upon. Though we got out of it at the last minute, the courts tried to contact this loan agent (CitiFinancial) and they never answered to the court. We were told that means they released any interest in the home and any money in regards to the original loan.
The other day I received a bill from them, the last contact from them was 2008! They now demand their money ($15,000.00 and some odd dollars)

Legally do I still owe them? Are there any time limitations on loans such as this?
And why can they/why want my money now when they wouldn't accept it, or wanted it when I tried YEARS ago to make payments?

How can they just re-appear after 6 years, and not answering the court during our foreclosure and never having sent a bill in 6 years?
What are my options and what should I do?

You are probably going to have to have everything reviewed by a professional in your area because of the peculiarities involved with your situation.

That said, it appears that the collection laws in Ohio favor the creditor - with statutes of limitations of 8 years for actions accruing after September 28, 2012, or 15 years for actions accruing before September 28, 2012, so, yes, it is possible that you will still be required to pay the $15,000+ owed on the second mortgage loan. Here is a link to the law: http://codes.ohio.gov/orc/2305.06

Again, review everything with a professional in your area to determine if the failure of the loan company to contact the court during the foreclosure process has affected the collectability of the loan in any way.

I am really sorry to hear about the loss of your husband, Confusion Says. I wish you good luck.