Judgement Against House, but is the Debt Valid?

[therainking]

What is the name of your state? Washington

Hello everyone; great forum here.

My wife and I have recently encoutered a confusing situation. I've been reading through the forum and sort of have some information now, but due to our circumstances I would love some real advice as to exactly how to proceed.

Here's the scoop:

My wife had a credit card with Wachovia when we were young and irresponsible that we let get out of hand. Many years later, I'm betting at least 5 or 6 years now, we have a collections agency named Finex Systems calling us to collect. Finex got the debt 1.5 to 2 years ago or so.

Now, here's the thing: I could have sworn we paid Wachovia off already, and nothing shows for them. We called Wachovia, and they can't even find any record whatsoever of us ever having an account with them. If that is true, how can this agency be collecting a debt that Wachovia can't even find? We asked the Wachovia rep if the account was bought by Finex if it would still show up for her, and she said yes. So, that's the first thing that is fishy.

Secondly, we were paying every month to Finex on this. We recently moved into our first house and our address changed. Their bill was not forwarded to us, but was returned to them as undeliverable. Now they are saying because we missed one month we must now cough up the whole sum ($900...but more than we can do right now) or they will put a judgement against our house.

Also of note is the fact that while nothing shows for Wachovia on our credit report, I do have something that says Wachovia-Pinnacle. However, if Wachovia can't find any info on me, how does Pinnacle fit in? I'm confused and can't get answers.

I read through the FDCPA lingo, and while this seems fishy, I can't find anything specific regarding this. Finally, how do I get them to validate the debt? If they put a judgement against my house, what will that do me immediately? Will my mortgage company/bank freak out? This is our first house and we have been paying bills and debts for a long time responsibly, and this agency would have gotten our payment if it wasn't for the address mix up. That said, I'm kinda glad this happened as I'm now wondering if a) this debt is legit and b) if I should be paying it.

So, to recap:

-Credit Card opened 6 years ago or so with Wachovia.
-Wachovia was bought out by another company at some point, I believe.
-Debt was either charged off, or paid off by us through another agency (Pinnacle)???
-Finex systems either got ahold of a debt that Wachovia can't verify, may somehow be tied to Pinnacle, or may be totally bogus.
-Finex says due to one missed payment we now owe the balance due or a judgement will be placed against our house.

Thanks in advance for any help, gang!

Sincerely,

Dan.

[cmorris]

Originally Posted by therainking

What is the name of your state? Washington
My wife had a credit card with Wachovia when we were young and irresponsible that we let get out of hand. Many years later, I'm betting at least 5 or 6 years now, we have a collections agency named Finex Systems calling us to collect. Finex got the debt 1.5 to 2 years ago or so.

**The staute of limitations would have run out at 3 years.

Now, here's the thing: I could have sworn we paid Wachovia off already, and nothing shows for them. We called Wachovia, and they can't even find any record whatsoever of us ever having an account with them. If that is true, how can this agency be collecting a debt that Wachovia can't even find?

**Happens all the time.

We asked the Wachovia rep if the account was bought by Finex if it would still show up for her, and she said yes. So, that's the first thing that is fishy.

Secondly, we were paying every month to Finex on this.

**Bad move on your part. The statute of limitations doesn't apply now.

We recently moved into our first house and our address changed. Their bill was not forwarded to us, but was returned to them as undeliverable. Now they are saying because we missed one month we must now cough up the whole sum ($900...but more than we can do right now) or they will put a judgement against our house.

**The have to hire an attorney and sue you first. IF they win, they get a judgment--a piece of paper. Then they have to file for a lien. It's not as easy as they make it sound, though still not pleasant.

Also of note is the fact that while nothing shows for Wachovia on our credit report, I do have something that says Wachovia-Pinnacle. However, if Wachovia can't find any info on me, how does Pinnacle fit in? I'm confused and can't get answers.

**It may just be how Wachovia reports. Other than that, is it accurate?

I read through the FDCPA lingo, and while this seems fishy, I can't find anything specific regarding this. Finally, how do I get them to validate the debt?

**Send the collection agency a letter, certified mail return receipt. Ask for proper validation as per the Fair Debt Collection Practices Act. Tell them you dispute the alleged debt and request validation. When you get your green card back, dispute the tradeline(s) on your credit reports as "not mine." Do this through a letter, certified mail return receipt. This will put the collection agency on a timeline (30 days normally; 45 if free report).

If they put a judgement against my house, what will that do me immediately?

**A public record will go on your credit reports. You will have to pay the lien before selling your house.

Will my mortgage company/bank freak out?

**I doubt they will care as long as you make your payments on time. Do you have any credit cards? Beware of universal default!

This is our first house and we have been paying bills and debts for a long time responsibly, and this agency would have gotten our payment if it wasn't for the address mix up. That said, I'm kinda glad this happened as I'm now wondering if a) this debt is legit and b) if I should be paying it.

With validation, it has to come from the original creditor. If Wachovia doesn't have any records, you will probably be fine.

Go to [URL=http://www.creditboards.com]creditboards.com[/URL]. There is a lot of info about credit, collection agencies, validation, etc. There are even sample letters. Just remember, use short letters.

Good luck!