2nd Trust Deed-Forclosure?

[Romy]

I live in California. We stopped making payments on our house on the first and the second mortage in March of 98'. Our second mortgage was sold to another company in 99'. 4 years later, this company is calling us and telling us that they are prepared to take us to court for the remaining balance of the second mortgage which is $23,600. We thought this was all handled in the forclosure. What is the statute of limitations on this loan and can we really be sued? We do not have anything, money, property, etc. Are we facing bankruptcy?

 

[HomeGuru]

Yes you can be sued if the foreclosure sale did not net the amount to pay the lender in full.

 

[Romy]

Is there a Statute of Limitations on how long a real estate lender can wait to sue? It's been 4 years since the last payment.

 

[HomeGuru]

No because lender has a mortgage.

 

[Romy]

Ok, so I guess they are trying to sue on a Promissory Note. Thanks for your help.

 

[HomeGuru]

I wish to clarify my last post which I responded to without re-reading your inital post.
If your property went though foreclosure and the foreclosure was completed, the 2nd mortgage is not secured.
Therefore, you just have a deficiency judgement against you.
If this is correct, the judgement amount can be discharged in BK.

 

[Romy]

Well, I do appreciate all of your help. We are trying to avoid a BK. Hopefully the company will work with us and accept a payment that will satisfy both parties. We did borrow the money and if we can pay it back, then that is what I would want to do. I guess most people would think that we are crazy to want to do that. It will be tough but we will give it our best shot. Again, I thank you for your help.

 

[HomeGuru]

Good luck to you and thanks.