I know that statues of limitations on debts, this one is a substantial loan, in the state of NY is 6 yrs. According to info i have obtained the law states the last payment made or the chg off date is the date one goes by for when the statues start. On my credit report for this one loan, it shows 3 charge off dates? why 3? and which one do i go by. Next question is this: I was told that after the loan went into default, because i left the state the loan originated in, the time freezes until i move back into the state, and was also told this loan is being brought back up because the IRS did an audit and because the loan is over 10k, they are coming after my sister and I again. She co signed on the loan. They told her a much higher pay out that myself. I was offered 2900 to pay off and she was offered 10k to pay it off. I told him it was beyond statues and he said i was wrong because the time froze on this loan because i moved out of state. Is this correct? and can they collect 2 different amounts from my sister and I. He was also telling me about my credit and even read everything on my credit report. Actually he was quoting an awful lot of lies on top of it, but they are known to strong arm and bully. This company is out of Cali, i am in Mass and my sister is in NY. To file a judgement in court against us,would they not have to go to courts in each of our states, or just the state the loan originated in and what is he likeliness of that happening? and how do i find out the correct chg off date of this loan?
I co own a house with another individual and i was told they will take me to court and put a lien on “my” half of the house that im deeded on. Says that is legal to which im not sure about.
The loan was for a mobile home,, it got foreclosed on. The company i had the loan from never retrieved the property and this was back in 2002. The mobile home seems to have disappeared off the face of the earth. The loan company has no idea where it is. So my other issue was this, had they come for the mobile home when i vacated,it would have been re sold or auctioned off causing my loan to go down in amount and i would have been responsible for the remainder, just like a car.
Now because the home was never retrieved they are saying i have to pay the entire loan. And if not, then they are going to put judgements against myself and my sister. can they put 2 judgements on against 2 different people? My sister was told they were going to destroy her squeaky clean credit if she didnt fork over 10 . They actually gave her 2 days to pay it. I told the man, i was not working, have no way to pay, and if hes going to put a lien on my house , go for it, its at risk with the economy right as it is.
Basically the man was ticking me off with his lies so i said what i said.
He wished me luck and ended the call.
Anyone have any answers?
The biggest thing here along with how old this loan is , is no one ever got the mobile home and now its disappeared and i never had the chance to lower the balance.
Any help would be appreciated.
I had fallen into some severely hard times, im not a dead beat people.Things happen.
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you need an attorney versed in NY law on this.
some of the bits I know –
what the company did or didn’t do in 2002 is immaterial [grab the collateral] — you owe and you know you owe. they have the right to chase after everyone on the loan, including your sister. the only defense you’d have is if the lender grabbed the collateral and resold it and didn’t reduce the principle at the time — and you’d have to prove this which means finding the unit.
[the unit was probably sold by the property owner for unpaid rent -- which is perfectly legal in most states, BUT said property owner was required to notify the lien holder at the time AND turn over any excess funds received to the lien holder.]
different offers to different folks is perfectly legal. they can even take your money and then sue your sister for the balance. In fact, that might be easier.
they file suit in NY, where the loan was made and the mobile home was. If the amount is over 10k, your attorney may try to have the case heard in Federal court instead of NY state courts, which MIGHT let you move the case to MA, — BUT — NY law will apply in either.
as to lowering the balance — you’ve had 7 years to make payments to the original lien holder. that won’t wash in court. the mobile home is [was] your property and you have to be responsible for it, they do not — foreclosing is optional, not mandatory, and thus their non-foreclosure isn’t a defense for your non-payment.
try google on NY laws about the age of the debt — maybe that’ll give you some guidance on this “moved out of state thing”. AND it may depend on whether you properly notified the lender or whether you simply disappeared.
sounds to me like a collector bought the debt for 10 cents because the statute of limitations is about to run out and is trying to get any amount as cheaply as possible. AND, filing suit is reasonably cheap [a few hundred at most] while the amount the might collect is thousands.
and yes, if they win the case and get a judgment, they can file a lien on any property even partly titled in your name anywhere the local court will permit — which is everywhere in the US.
you need that attorney or else to make a deal. If you make a deal, you want your sister to be released from liability as part of the deal.
one more bit … to the extent you make a deal and pay less than the principle owed in 2002 [excluding interest and charges and fees], you will have taxable income [forgiveness of debt] on the difference. the recent tax relief on this will not apply to you because you don’t live in the property securing the loan.
does this help?
I agree with the first poster in that you should find a lawyer. Preferably one that is well versed in repo laws and the UCC.
I disagree with the first poster in that what the company did or didn’t do in 2002 is not immaterial.
Repo laws are repo laws and if the original creditor did not follow the repo laws then they have no legal claim. Plus, the collecting SOL for repo’s is 4 years (UCC)
Manufactured housing repo’s are covered under the same rules as a car repo. Plus, if you used the home as a principle residence there may be added protection.
Repo’s fall under the UCC and your states repo statutes.
UCC § 9.506 a deficiency can not be claimed unless all of the required notices were properly and timely given, and all of the allowable redemption and cure time limits were adhered to. (check your states repo laws for added protection)
UCC § 2-725(1), provides that “[a]n action for breach of any contract for [the] sale [of goods] must be commenced within four years after the cause of action has accrued.
Tolling of the SOL cannot happen if you are available to be served. Simply moving to another state will never toll the SOL.
Massachusetts Borrowing Statute (note the last sentence)
§ 9. Suspension in Case of Non-Resident Defendant.
If, when a cause of action herein before mentioned accrues against a person, he resides out of the commonwealth, the action may be commenced within the time herein limited after he comes into the commonwealth; and if, after a cause of action has accrued, the person against whom it has accrued resides out of the commonwealth, the time of such residence shall be excluded in determining the time limited for the commencement of the action;
but no action shall be brought by any person upon a cause of action which was barred by the laws of any state or country while he resided therein.
The collector is lying to you, imagine that.
You might be able to handle dealing with the collector, and even the original creditor, yourself but to do so you need to research the UCC, NY and MA laws.
You might click on my profile and click on the last link I’ve listed to a free credit discussion board. You will be able to find a free letter template to dispute the mobile home repo along with making it easier in finding your states laws and the UCC laws.
Since the original creditor failed, so they say, to physically repo the mobile home then you may have to address that issue also, that is, if they don’t end up going away after receiving the repo dispute letter.
Again, you might think about finding a lawyer that knows the UCC and repo laws.
You might go to http://www.naca.net (National Association of Consumer Advocates) and find one in your area that knows those laws. Ask them if they will give you a free first consult so you can see where you stand.
eta for some afterthoughts
If your sister did not sign the back of the contract, where she guarantees the loan, she is not liable.
A co-signer is allowed the same as the primary borrower in that the creditor is required to send the same repo notices to the co-signer.
I don’t know why/how they can claim a single debt can be charged off 3 times, something isn’t right there.
They cannot claim that you owe $x amount and that your sister owes a different amount. They can only claim the one true amount.
If they are claiming that the IRS did an audit, they may try to send a 1099c where you would have to pay taxes on the amount.
A 1099c comes with it’s own laws that they must follow, such as the amount must not include interest and fees after the loan had been charged off, etc.
It’s rare that a collector has the breakdown of the amount. After this amount of time the original creditor may not have it either.
If they send a 1099c and you feel the amount is wrong you can challange the 1099c with the IRS.