Please help! Collection on a 10 year old HUD loan

[SandyinCA]

What is the name of your state?CA

My ex-husband defaulted in 1997 on a joint HUD loan (2nd mortgage for $20,000) that he had agreed to pay as part of our divorce in 1996. He also filed bankruptcy at that time (without notifying me).
I knew nothing of this until my tax return was seized this May 2004, and I called to find out why. They also got my 2005 tax return.
This has now been turned over to a 2nd collection agency. I kept avoiding the first agency, so I'm guessing they gave up.
My questions are:
1. Is there a Statue Of Limitations on a HUD federal loan in CA? How long?
3. If so, is the money they got from my tax returns considered a payment which will start the SOL again?
4. Can they come and seize our house, vehicles or other property? (that I own jointly w/current husband)
Appreciate any help, they have added on years of interest, so the $20,000 loan is now up to $36,000.00.

[HUD-1]

If the COURT ordered your ex to pay the loan and relieved you of responsibility, then get the divorce decree to the Albany, NY collections Center. Otherwise, see an excerpt from the court case below...

In the Matter of
BOB AND AZHAR IBRAHIM,
Petitioners HUDBCA No. 99-C-SE-Y81
Claim No. 7-71025316A




DECISION and ORDER
Petitioners were notified by Due Process Notice that the Secretary of the U.S. Department of Housing and Urban Development (HUD) intended to seek administrative offset of any Federal payments due to Petitioners or to seek administrative wage garnishment of Petitioners' pay in satisfaction of a delinquent and legally enforceable debt allegedly owed to HUD. Administrative offset is authorized by 31 U.S.C. § 3720A; administrative wage garnishment is authorized by 31 U.S.C. § 3720D. The claimed debt has resulted from a defaulted loan that was insured against non-payment by the Secretary pursuant to Title I of the National Housing Act (12 U.S.C. § 1703).

Petitioners have made a timely request for a hearing concerning the existence, amount or enforceability of the debt allegedly owed to HUD. The Administrative Judges of this Board have been designated to conduct a hearing to determine whether the debt allegedly owed to HUD is legally enforceable. 24 C.F.R. § 20.4(b). As a result of Petitioners' request, referral of the debt for offset or issuance of a wage withholding order was temporarily stayed by the Board.

The Secretary "has the burden of going forward to prove the existence or amount of the debt." 31 C.F.R. § 285(f)(8)(i). "Thereafter . . . the debtor must present by a preponderance of the evidence that no debt exists or that the amount of the debt is incorrect." 31 C.F.R. § 285(f)(8)(ii).

The Secretary has satisfied his burden of proof by submitting the following: (1) a copy of the Installment Note signed by Petitioners; (2) the "Addendum to Note" executed by Petitioners and which is incorporated into the Installment Note; (3) documents relating to the assignment of the Note to the Secretary; and (4) the uncontested Declaration of Lester J. West, Director of the Albany Financial Operations Center of HUD, that Petitioners defaulted on their obligation to repay their loan and that certain specified amounts in unpaid principal and interest are now due. (Exhibit A and attachments to Secretary's Statement dated January 27, 1999, Declaration of Lester J. West dated November 20, 1998). These documents establish the existence and amount of the debt. Petitioners have submitted no evidence that the debt is not legally enforceable. In light of the foregoing, I find Petitioners' debt to be past-due and legally enforceable.

Although there is no evidence of Petitioners' inability to pay the debt, if Petitioners wish to negotiate repayment terms with the Department, Petitioners should contact Lester J. West, Director, HUD Albany Financial Operations Center, 52 Corporate Circle, Albany, NY 12203-5121. His telephone number is 1-800-669-5152, extension 4206.

Order
The debt which is the subject of this proceeding is legally enforceable against Petitioners in the amount claimed by the Secretary. The Order imposing the stay of referral of this matter to the IRS for administrative offset or to the U.S. Department of Treasury is vacated.

It is hereby ORDERED that the Secretary is authorized to seek collection of this outstanding obligation by means of administrative offset of any eligible Federal payments due to Petitioners. No collection of this debt shall be by administrative wage garnishment unless Petitioners are given specific notice of the Government's intent to issue such an order and unless Petitioners are given the right to contest the issuance of such an order under the hearing provisions set forth at 31 C.F.R. Part 285.


February 23, 2000