Mortgage on primary residence was assigned to a new bank which was the PL in the FC action. FC was completed and FJF issued in May 2009. I received a 1099-A from the original lender. Property was sold by the FC bank in March of the following year. No deficiency requested; docket now says file destroyed. A company that apparently purchased the debt was calling me daily trying to collect. I disputed and they responded that the mortgage had been assigned to them in August 2009. There is nohting recorded in the public records to this effect. Is this a valid debt? If not, would they have any standing to pursue a deficiency judgment?
Deficiency claims have a 5 year statute of limitations, running from the date of entry of the judgment. Accordingly, a deficiency claim is still timely now.
Once the foreclosure is completed by means of a final judgment, there is no more mortgage. Accordingly, an assignment of rights to a deficiency claim would not be the same as an assignment of mortgage.
Whether it is a valid debt depends on many details. You should immediately contact an attorney who is knowledgable in foreclosure-related litigation and deficiency litigation unless you have obtained a bankruptcy discharge, or unless you intend to pursue bankruptcy instead.
Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-client relationship is created or is intended to be created hereby. You should contact a local attorney to discuss and to obtain legal advice.
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Immediately contact a property attorney skilled in litigation of foreclosure-related matters and deficiency litigation. Get a Bankruptcy consultation as well. Do not delay this.
NOT LEGAL ADVICE--FOR EDUCATIONAL PURPOSES ONLY. We don't know the facts and this is not legal advice. Seek the advice of licensed property law attorneys immediately so they can secure your rights. Hiring an attorney is a serious and important decision. Please ensure that you take the time necessary to evaluate and interview more than one attorney to determine whom to hire.