Legal Question in Credit and Debt Law in North Carolina

Your story was a bit unclear. But it seems you are saying that the home was set for foreclosure but you sold the property before the foreclosure completed.

If this is the case, a foreclosure notation and past due payments could still show on the credit report until they naturally come off. As for the claims you mentioned, you will need to speak to an attorney about your claims.

The statute of limitations in NC is 3 or 4 years for most things, although contracts under seal (which most mortgages are) are subject to a 10 year statute. The interest rate and mortgage laws were amended in 2009 and 2013 to make certain kinds of loans illegal so if the loan violated these laws then there could have been an action. But why would want to sue now? The home is gone. You can speak to a lawyer but if the house is sold then I think its probably not going to be productive to sue unless you really have a clear cut case and the action is not time-barred. And how is this harassment? There is no harassment just because a lender puts information on your credit report. Information that is proper can be re-added if you play the dispute game and get it off.

You indicate that the home was sold while in foreclosure. That means that you obviously defaulted on the mortgage at some point. The fact that there was a foreclosure or delinquencies would then be proper. However, your credit report should reflect that the mortgage was paid off. If the property was sold by you for more than what was owed, the mortgage company does not get to keep the excess - that would go to you. But if the mortgage was satisfied in full, including any late pays, there should be a zero balance.

I don't know what you are disputing here without seeing what is on your credit report and determining whether its correct or not. Since its been 4 1/2 years, then the debt is going to come off in 3 more years. However, there is a set process which must be followed before you can sue if the lender is reporting erroneous information. Have you followed it by sending a certified letter to the credit bureau followed by a certified letter to the lender?

If not, you might want to see a lawyer who specializes in FDCPA/FCRA violations and have the lawyer look at your report to see what information is erroneous and whether it can be properly disputed. You might also want to see if the loan was illegal and whether an action on it can still be maintained.

I also question your damages here. Assuming there is a violation, you can recover either your actual damages OR $1000 plus attorney fees. If you had a delinquency and foreclosure, what other debts were you behind on, if any? What other derogatory things are on your credit? These cases are very hard to establish unless you would have pristine credit were it not for the foreclosure. Lawyers like them because they can recover attorney fees if a violation is established but if you are looking to score big bucks it may not happen unless this loan really was illegal or the foreclosure wrongful in some way.