Mortgage foreclosure and statue of limitations.?

Question

My husband had a repossession on a home 4 years ago, sold at auction which I know he is responsible with his ex wife for the deficiency balance due. The statue of limitations show 3 years in our state. Has collection agency trying to collect on the debt. If the statue of limitations is 3 years, is it legal to continue to call and get the payment? Can they keep re-selling the debt and start all over with the collections process.  Mississippi statue of limitations show this on their website...
Open Accounts: 3 years from the date at which time the items on the account became due and payable,(MCA 15-1-29 & MCA 15-1-31).  Can they still contact him to collect it??

Landlord · Accepted Answer

The foreclosure already went to court, well under the SOL.   The SOL does not mean that debts are forgiven, only that they can no longer be sued for.   They are not sueing him, they are collecting on a debt that already went to court.

He will be obligated to pay this until he has done so and it is completely legal for them to attempt to collect the money owed until he has taken care of it.

Anonymous · Answer

If a debt is owed, there is no statute of limitation for trying to collect it.  Just change your number. If you do not want to pay, you may be able to negotiate a lesser amount its been 4 years so you offer them 50% of the amount, they will probably take it.  But yes even when you settle they keep coming back to collect so keep the documentation.

Anonymous · Answer

If the banks ever give up on the deficiency, the bank will finally write off the loan and send your husband a 1099-C for the full amount.  The IRS will expect him to report this as income on his tax return.

Your husband is not off the hook for this.

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Mortgage foreclosure and statue of limitations.?

3 Answers