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Hello, and thank you for contacting Just Answer. My name isXXXXX am a bankruptcy law professional, and I look forward to answering your question this afternoon.
So that I understand exactly what we are talking about, are you asking about a debt that has been sued over, and a judgment has been issued, or just a debt that is owed, before any legal action has been taken?
As far as the second mortgage? No, no suit filed.
Two credit card companies have sued, one disappeared after their filing time ran out, and they never refiled (that was 2 years ago) and another filed but I fought them in court and it was dismissed. Before that happened I was sure I would need to file bankruptcy. But with those two "gone"...I'd like to try to avoid it if I can. So my main question is just regarding the second mortgage. If there's no payments and no legal action, is it non collectable after 6 years? Thanks
If the debt you are questioning has not been sued over yet, and no payments have been made, then the main question is whether or not the debt can still be sued over (ie whether or not the statute of limitations has passed). In Oregon, the statute of limitations is 6 years from the date of the breach (meaning ultimately the date of the first missed payment, so long as no subsequent payments were made).
So, yes, the statute of limitations in Oregon is 6 years, and so long as no payment has been made for 6 years, then arguably the debt becomes un-collectable, at least through the court. So long as the second mortgage is actually unsecured, then it would not be collectable. If the debt is secured, meaning they have a security interest in the home, then foreclosure may still be a risk (Although it may not be likely if they have taken no action for 6 years).
I hope this helps, and let me know if you have any additional questions or require clarification of anything I have said. Otherwise, please remember to RATE my answer positively so that I can receive credit for my work.
I would assume as long as there's a first mortgage in place, there's no way for the second to have a security interest. And the house is now worth half of what I paid for it.
Thanks for your help.