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Is it legal 4 CA to attempt this?


hasas13
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I have a collection agency coming after me for foreclosed property back in 2000 past SOL. I also found a 1099 in my old files which reflects the amount I supposedly gain as the result of the nonjudicial sale which I reported as a income, now what. What is next in my defense and to protect my self from them.? I have DV them and they brought up the note and the transfer of ownership of the note.

On the letter to me they also said the " they make no representation of law with regard to the SOL. WHAT? Are they on drugs? Someone please clear my head and give me some wisdom. Thanks!:confused:

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It is certainly legal for them to call you and ask you to pay on any debt, even one that could be out of SOL. It is also legal for you to send a letter to the CA stating that you do not want to hear from them and that they should pound sand if they think you are ever going to pay them. If they try to sue, that is where you bring up the defense of SOL.

As for the 1099, the courts have already ruled that issuing a 1099 does not preclude a creditor from trying to collect on the debt.

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There's some missing info needed...

1. What state was the property in?

2. Was this a purchase money loan?

3. Was this a primary residence?

Depending on the state, it could be a non-recourse state- meaning when a primary home is foreclosed on - with the original loans in place, the bank eats any deficiency there may be.

If it's any other scenario, then there is a possibility of a lender or JDB coming after you for the remaining loan balance.

Was it Associates Asset Management?

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