After foreclosure (North Carolina), can your mortgage co.make you pay what they lose in a foreclosure sale?

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I was foreclosed in 2004. Through the entire process, I worked with the lender and their attorneys, and even notified them of my forwarding address should they need to send me additional correspondence. The house was sold in May ‘04. My original loan had a 1st & 2nd mortgage (to avoid PMI). I talked to their attorneys who advised me that that the house was sold for enough money to cover what I owed. I assumed that the entire debt(1st & 2nd) was covered. Now, 3 years and 8 months later, I received a letter from a law/collection firm asking for the second mortgage balance, including interest of over $ 9,000. I have one income, and bought a house in 2006. I’m in no position to pay this. Am I still obligated to pay the balance, considering that I almost four years have elapsed before I was notified of this? I want to do what’s right, but I cannot afford to add an additional loan to what I currrently have now. Any info would be greatly appreciated.

  1. Reply
    Stephen G
    May 1, 2011 at 7:13 am

    They can ask you to pay the difference between the sale price and what you owed.

    With the rate of foreclosures these days, Im sure they will be open to any kind of payment arrangement.

    Contrary to what you believe, you are empowered here.

    Do not let them bully you. Something is better then nothing.

    Good Luck

  2. Reply
    May 1, 2011 at 7:43 am

    North Carolina’s Statute of Limitation laws are complex.

    Basically, they have 3 years on most debts, but 10 years for judgements.

    I would assume you have a judgement. And if you do they have 10 years to sue you.

    Sounds like you are talking about a large sum, it might be worth your time to consult a lawyer about your legal standing.

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