Author Topic: California Statute of Limitations on Deficiency  (Read 2594 times)

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JulieSmith

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California Statute of Limitations on Deficiency
« on: July 20, 2010 03:07:49 AM »
Hi there..new member here..I recently completed a short sale in california where the second (owned by the same bank as the first)  took $3500 to settle an outstanding second mortgage of $68,500. My question is about a potential deficiency judgment...how long does the bank (or a collection agency) have the right to seek a deficiency judgment on the second before the statute of limitations in california kicks in? Thanks in advance for any help or advice ...

flacorps

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Re: California Statute of Limitations on Deficiency
« Reply #1 on: July 20, 2010 02:43:08 PM »
Your question bespeaks a misunderstanding of the term "settled" ... if the claim is truly settled, then the statute of limitations is entirely irrelevant ... your defense to the claim would be that it is already settled. The time to sue ended when they took $3,500 and signed on the dotted line.
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JulieSmith

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Re: California Statute of Limitations on Deficiency
« Reply #2 on: July 24, 2010 07:45:48 PM »
Thanks for the reply flacorps.  The first and second were both owned by the same institution, hence my use of the word settled. I did not know about deficiency judgement issues at the time, but have since heard about it. They have not yet contacted me about a deficiency settlement - and hopefully never will. But for my own peace of mind, i'm just wondering when the statute of limitations in California kicks in and I no longer have to worry about this. Any advice/help would be appreciated.

transborder

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Re: California Statute of Limitations on Deficiency
« Reply #3 on: July 26, 2010 02:37:19 AM »
We need some more info to better help...

Was this a purchase money mortgage? Meaning were these the original loans used to by the house with?

 

JulieSmith

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Re: California Statute of Limitations on Deficiency
« Reply #4 on: July 28, 2010 03:45:02 PM »
Thanks Transborder. There was an original loan used to purchase the property. The second was a home equity line of credit that was tapped over the years. Both were with the same institution, and both -- or so i thought -- were taken care of as part of the shortsale. The original loan was mostly taken care of as part of the short sale, but the home equity line of credit was forced to take substantially less than the outstanding balance. Does that help? (Sorry for the confusion..i'm just new to all of this).

itsmeagain

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Re: California Statute of Limitations on Deficiency
« Reply #5 on: July 28, 2010 05:48:34 PM »
In your first post you said they "took $3500 to settle an outstanding second mortgage of $68,500".  Did you receive any kind of settlement agreement?  Did it say something like "In satisfaction of"?

 

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