Posted on: 27th Jun, 2012 11:27 pm
Our family home was foreclosed on the first week of August 2011. There were two mortgages on the property. There were deficiencies on both. We received a 1099 on the first. The second, a balance of 40-50k was charged off. A collection agency has recently sent a letter stating they are collecting on the debt. In Mississippi, I believe deficiency actions have to be filed within 1 year. Correct? If so, should I wait to see whether they file before considering bankruptcy? There's no way to repay that amount. I don't really have any other debts to speak of other than this deficiency. Also, FWIW, my wife and I recently divorced, which is the reason for this whole mess. Any advice?
Hi Rock,
You should wait and check out whether or not they file any kind of deficiency against you. If they file, then you can consider the option of bankruptcy.
Thanks
You should wait and check out whether or not they file any kind of deficiency against you. If they file, then you can consider the option of bankruptcy.
Thanks
So, I guess my big question is does the 2nd Mortgage holder in MS fall under a 1-year statute of limitations on filing an action for a deficiency, as I seem to have read? If so, I may at least soon be safe from court action. The one year mark is fast approaching.
Hi Guest!
Welcome back to forums!
Once the statute of limitations is over, the CA won't be able to take any legal actions against you. However, it will remain mentioned in your credit account and you will be liable for the debt. The CA can contact you to collect the debt.
Feel free to ask if you've further queries.
Sussane
Welcome back to forums!
Once the statute of limitations is over, the CA won't be able to take any legal actions against you. However, it will remain mentioned in your credit account and you will be liable for the debt. The CA can contact you to collect the debt.
Feel free to ask if you've further queries.
Sussane