Legal Question in Credit and Debt Law in Georgia
After Five Years, I Got a Collections Notice
I received a collection notice in January (2006) stating that I owe a debt to a mortgage company. The problem is, I haven't heard from this mortgage company in at least five years.
When I checked my credit, it stated that the company that I had the mortgage with sold the account to this mortgage company when they foreclosed. I do not recollect ever having any contact with this new mortgage company. Either way, my credit report states that both companies have written the accounts off and closed them. Balances due are zero and the report from the second company is due to fall off next month (04/2006). (Not sure about the first company's as it does not even show up on the report that gives this info.)
My question is this, what do I do about the letter from this collection agency? They say that they are representing the second company and that they are requesting the full amount. I don't want to contact the collection company (Syncom of Texas) if it will renew this on my credit, but I don't want to cause my credit further damage by doing nothing if I should be doing something.
Also, please note, I lived in Georgia when I acquired the mortgage and when the repo occurred. I am now a 6-year Indiana resident.
2 Answers from Attorneys
Re: After Five Years, I Got a Collections Notice
Contracts under seal have a 20 year statute of limitations.
However, to collect on a foreclosed mortgage debt, the creditor has to file a court action to confirm the sale. If they did not they cannot collect the deficiency (most foreclosures do not have deficiencies anyway).
Unless there was a confirmation, and you should know that, it doesn't sound likely that you owe money. Have a lawyer look at the letter and find out details from you, and, if that is correct, then either you or he should write to deny liability within 30 days. Definitely let counsel review the paper trail first.
Re: After Five Years, I Got a Collections Notice
If you owe the debt, you should pay it. The first step is to determine the amount, if any, you owe and the appropriate party to pay. The collector may be able to resolve that, and you already have contact info on your credit report. Make the effort to track it down. Perhaps they will agree to not update the credit report with full payment. A short term hit on your credit report is worth the long term benefits of honoring your obligations and debts.
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