I have a heloc from 2005,which was charged off, on a house that forclosed in 2013. My last payment was in 2010. It is now with a collection agency. Not sure when the statute of limitation would start. Trying to get a mortgage, but this collection is causing issues. Please help!!
There is no answer right now. Bartram just went final which says that the lender can foreclose as every month missed payment is a new default. The portion about what payments exactly were due was not addressed by the FL Supreme Court. Your issue will still be even if they can only go back 5 years to 2012, they can still collect forward to 2035 (if it was a 30 year HELOC). It will not just come off, sorry, you owe something to them one way or the other. And writing if off is for tax purposes and has nothing to do with the collectibility of the debt; or mean the debt is uncollectible.
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Depending on whether it falls under the Bartram case they may still be able to collect even if after 5 years. However lines of credit lenders almost always settle for a percentage of the debt to write it off meaning you can pay them a very small sum and get it closed out. Consult with an attorney who has experience negotiating these second lenders and short payoffs
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Your facts are a bit confusing. You say the property was "foreclosed" in 2013. Do you mean that there was a Final Judgment, the property was sold, and you are now referring to a deficiency judgment? What exactly do you mean by, "it is with a collection agency." WHAT is " it"? And when you say "this collection," what are you referring to? Suggest you clarify and re post.
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I agree with my colleagues. You owe the money even if it was "charged off." However, I settled this type of loans for 10 to 30 percent of the original amount due. You can try to settle this yourself or hire an attorney to do it for you.
This is more complicated of an issue then what is being discussed here. It's been approximately 7 years since you defaulted on this loan and while there are certainly some issues in regards to whether or not the statute of limitations applies, I would also point out that in my experience if you're being actively pursued by a debt collector then there is a high probability that the debt collector is violating the Fair Debt Collections Practices Act and the Florida Consumer Collections Protection Act. If they are violating these statutes then you may be entitled to damages. In my experience, one of the remedies of catching a debt collector violating one of these statutes is a waiver of the outstanding debt. If they're calling your cell phone then they're probably violating the Telephone Consumer Protection Act which is a big one that brings big damages (between $500 - $1500 per call). I wouldn't look at debt settlement here, I would look for a an attorney the sues debt collectors and start there.
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