Legal Question in Real Estate Law in California
statue of limitations
We have not heard from the holder of our second trust deed for over five years,nor have we heard from the management company that was servicing the account. There is an unpaid balance but was told that there is a time limitation. Basically word of mouth indicated that if they have not tried to collect in this amount of time that the property is ours. How true is this and what steps should we take next? Thank you
1 Answer from Attorneys
Re: statue of limitations
If you owe the money, then you should pay the money. If this were an unsecured debt, the statute of limitations would be four years after the due date. However, if the debt is secured by a deed of trust, then the limit is at least 10 years after the due date, and if the due date is not discernible from the note and deed of trust, then it could be 60 years. See Civil Code Section 882.020. So, don't monkey around with this. The debt has been accruing interest all this time, will continue to accrue interest, and you should take steps to immediately pay the debt and remove this lien on your property.
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