2nd Mortgage Bank Is Trying To Collect Me After Forclosure 9 Years Ago
Please help!!!! 9 years ago, my ex husband and I lost our residential house due to the financial difficulty. At that time, both of us didn't have much knowledge about foreclosure so we assumed if we lost the house then both 1st and 2nd TD won't bother us anymore. But it's not true, the 2nd TD collector just contacts me today and asks for payment. I got so nervous and don't know what to do. My 2nd mortgage was about $30,000. Currently I do own another house and have a stable job. Do you think they will put a lien in my new home if I don't pay them? Please give me some advices, I'm really appreciated!!! By the way, I live in California. 
Thank god you live in California.
The second trust deed that is trying to collect against you. Was that second taken back by the prior owner when you bought the house? Is it what is called a Purchase Money Trust Deed?
If it is not and it is money you borrowed from a lender. Please give me the particulars and lets check it out. Relax.
Lucius.
Hi Lucius!
Thank you for your quick response!!! For your question, the 2nd TD was the money we borrowed from the 2nd bank, not from the prior owner.
the statute of limitations may have run out for them to sue you. did they ever sue you for the money owed and did they get a judgment if not after 9 years its too late to collect and or sue...
I agree with the others that the statute of limitations has run out on this lender. I do not know about California law but in Alabama a lender can not put a lien against your new home. Lufos will be able to give you more help as he is very knowledgeable of California re law.
Speak to an attorney about putting your new residence in a land trust with you as beneficiary. Make sure the attorney understands land trusts and how they work.
When the second lienholder tries to put a lien on your house, he will find that you don't own your house, a land trust does.
He may try to say that the debt was incurred before the house was put into a trust, and thereby piercing that veil, but it is definitely worth trying.
If nothing else, if they haven't done so already, when they try to check county records for any real estate that you own, nothing will show up. Good Luck!
I am not an attorney, and I'd definitely ask a good one on this, if you can find one. And probably as valuable, if not more so, is those with experince on this site.
I would not overlook the possibility that they may take you to court anyway, possibly win a judgment for something other than the foreclosure (breach of contract?), and then that would be on your record. At that point, when you sold your home, tried to refinance, etc., that may force payment of the judgment. May never happen, but I'd check it out.
I'd definitely try to put your property in a trust, etc., which, I've learned the hard way, is a good idea for many reasons.
I'm not trying to scare you, just suggesting you look at all possibilities of doing something to protect your assets. Don't get too stressed out, there's bound to be an answer.
Terry[ Edited by concrete on Date 03/06/2004 ]
Thank you all for all of your advices so far, I will try to look for an attorney today.
Oops! In hurry I forgot to answer to lp1. No, I didn't have any law suit with the 2nd lender in the past, that's why I got so surprised to get a call from their collector now.