Jump to content

Determining State for SOL on Repossession


Recommended Posts

This is my first post to this forum, but I have been reading and searching, and having a hard time finding anything about our particular situation.

Our (husband and I) credit is a mess. I have pulled our credit reports, and there is of course, quite a few errors. One of the biggest, the most money, is a mobile home repossession with DOLA of 8/00.

The OC is Oakwood Acceptance, and the TL reads:

Voluntary Repossession

Last Act: 8/00

Balance $59,254

We never heard from them after the repossession what so ever, and there was no deduction for any amount that they may have received from reselling the mobile home.

Obviously they either sold or transferred the debt, because there is another TL from Vanderbilt Mtg that reads:

Returned Voluntarily

Opened 3/04

Last act 9/04

Limit/highest 19544

Balance $59,254

We had never been contacted, or even heard of Vanderbilt Mtg until we recently pulled our credit reports.

As neither of them have been bothering us, I'm a little unclear on how to proceed, obviously, we don't owe both of them.

With the OC, the mobile home was purchased and located in TX, which has an SOL of 4 years. We are currently living in FL, SOL 5 yrs, but moving to MI next month which has an SOL of 6 yrs.

I would feel much more comfortable starting to dispute on these accounts if at least the OC was outside the SOL. I'm a bit afraid of waking a sleeping giant.

Any help of input on which direction I should turn would be greatly appreciated.

Link to comment
Share on other sites

The SOL is determined by what state you reside in. I also agree that you can't possibly owe 2 OCs on one loan.

Unfortunately, to get answers and straighten out this mess, you'll need to wake the sleeping giant. You have the right to dispute with the OCs directly and request account history, including information on the proceeds of any sale post-repo. Once you do this, the OCs are in turn required to report the status as disputed to the CRAs.

You may try pulling your reports as soon as they receive the letters to try to catch them in a pickle. However, a $1000 violation vs. collecting $19k or more from you may not give you much leverage. At that point, your only hope would be to negotiate full payment in exchange for PAID AS AGREED/NO LATES status. Just be aware that their incentive to do that is very low given that they can declare the debt bad, get a tax write-off, and sell it to a CA for extra money.

Even if they haven't sent you any letters, you can still be found and sued if you're one someone's payroll. It's probably best to try and work something out. If unemployed with no assets, you might be judgement proof.

Link to comment
Share on other sites

Thanks for your reply.

After googling "Vanderbilt Mortgage" I have found that in 2004 they purchased a bunch of mobile home loans from Oakwood. Does that make then essentially a CA?

And a couple of questions about your reply. First, I have seen alot of information about DV letters to CA, but that you can't send them to OC.

Also, once I dispute with them, how does pulling my report afterward possibly get them in a pickle? If they don't report it as disputed?

We are definitely not judgement proof, so this one has me a bit nervous. There are so many variables, the two companies, the amounts etc, and the fact that mobile home lenders a bit bottom feeder-ish to begin with. I think it might be worth it for me to hire a consumer advocate attorney for this particular situation. I just don't want to mess up, and have been intimidated in the past by CA's etc.

Link to comment
Share on other sites

Does that make then essentially a CA?

Doubtful. If their main course of business is to service mortgages, then that makes them a lender. If they were a CA, then they would be required to make that obvious in the company title; ex. Vanderbilt Asset Recovery Services.

Most likely they will simply charge-off the debt and sell it to a JDB for about $.03 for every dollar you owe. That way they can declare the entire amount owed as a tax write-off and get a little extra when they sell.

Also, once I dispute with them, how does pulling my report afterward possibly get them in a pickle? If they don't report it as disputed?

The FCRA says so. US Code 15 §1681s–2(a)(3):

Duty to provide notice of dispute

If the completeness or accuracy of any information furnished by any person to any consumer reporting agency is disputed to such person by a consumer, person may not furnish the information to any consumer reporting agency without notice that such information is disputed by the consumer.

Remember that you can hire an attorney at anytime, so one way or another you'll need to confront Vanderbilt to get this resolved. It's OK to be afraid, but realize that you have federally-protected rights. Sending a dispute letter in no way jeopardizes those rights.

Link to comment
Share on other sites

Well, my eyes are crossed from all the reading, but "I think" the SOL in MI is 4 years on a mobile home repossession, even though the links on this site say 6 years.

Here is what I found, and please, anyone correct me if I'm wrong. Clearing up this debt is going to be the determining factor on us filing BK, which is something we really do not want to do.

"Michigan Statutes of Limitation

Breach of Contract: 6 years, (MCL 600.5807(8).

Breach of Contract for Sale of goods under the UCC: 4 years: including deficiency actions following repossession and sale of goods subject to a security interest, (MCL 440.2725(1).

Judgments: 10 years, but are renewable by action for another 10 years, MCL.600.5809(3).

NOTE: Another state's limitation period may apply check statutes carefully. "


And here is the link to the Michigan legislation website, and it appears this statue is up to date.


Act 174 of 1962

440.2725 Statute of limitations in contracts for sale; contractual reduction.

Sec. 2725.

(1) An action for breach of any contract for sale must be commenced within 4 years after the cause of action has accrued. By the original agreement the parties may reduce the period of limitation to not less than 1 year but may not extend it.

(2) A cause of action accrues when the breach occurs, regardless of the aggrieved party's lack of knowledge of the breach. A breach of warranty occurs when tender of delivery is made, except that where a warrant explicitly extends to future performance of the goods and discovery of the breach must await the time of such performance the cause of action accrues when the breach is or should have been discovered.

(3) Where an action commenced within the time limited by subsection (1) is so terminated as to leave available a remedy by another action for the same breach such other action may be commenced after the expiration of the time limited and within 6 months after the termination of the first action unless the termination resulted from voluntary discontinuance or from dismissal for failure or neglect to prosecute.

(4) This section does not alter the law on tolling of the statute of limitations nor does it apply to causes of action which have accrued before this act becomes effective.

History: 1962, Act 174, Eff. Jan. 1, 1964"


The part that concerns me is the "law on tolling of the statute of limitations" I am unclear on the description of tolling, and am not sure where to find that information.

Our particular scenerio is this, DH is in the construction industry, so we have traveled quite a bit.

We purchased the mobile home in TX in 99, he was transfered to KY for 6 months. When we found out that we would be going to FL next, and not back to TX we contacted the OC about assistance in reselling. We were placed in a program where we paid only the interest and they listed it for sale. Well, after a few months of that, and them never placing it on their resell list etc, we stopped paying, and relocated to FL.

We are still in FL (SOL 5 years which will be August of this year), but we are moving to MI in 3 weeks. THis will be a permanant move as that is where my family is, and we have decided to no longer travel with DH.

I have no intention of contacting either to OC or the second mortgage company until we move. From everything I have read, the state used to determine the SOL is either the one where the contract was signed (TX) or the current state of residence (in three weeks will me MI), but I'm wondering where tolling comes into play, determining the 4 years SOL?

Thanks for your help so far.

Link to comment
Share on other sites

This topic is now closed to further replies.

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.