I had a loan with a private party, a single man, and he has died. He is recorded in a deed of trust at the county. The private party died 14 months ago and at that time I stopped making payments. I have not heard from anyone about the loan and I am wondering if the debt is not collectable.
nothing, I am waiting to see if anyone contacts me. I have talked to a real estate lawyer about the statue of limitations on debt. He said that if I didn't make a payment for four years they would not be able to take me to court. He did say however there would still be the matter of the deed of trust.
Just to be sure - you were the borrower for the loan - correct?
What state is the property in?
A statute of limitations is a law which places a time limit on pursuing a legal remedy in relation to wrongful conduct. After the expiration of the statutory period, unless a legal exception applies, the injured person loses the right to file a lawsuit seeking money damages or other relief.The statute of limitations in California for breach of Contracts: Written, 4 years; Oral, 2 years.So the attorney is absolutely correct. The statute of limitations starts to run when you first miss a payment you should have made - default.Then after you are sure that the statute of limitations expired - you would file a "Quiet Title action" to remove the lien (mortgage or Deed of Trust) against the property.
An action to quiet title is a lawsuit brought in a court having jurisdiction over land disputes, in order to establish a party's title to real property against anyone and everyone, and thus "quiet" any challenges or claims to the title.
This legal action is "brought to remove a cloud on the title" so that plaintiff and those in privity with him may forever be free of claims against the property. The action to quiet title resembles other forms of "preventive adjudication," such as the declaratory judgment.
Thank you this is what I was told by the RE attorney with some additions. My current question is related to the status now that while it is less than four years. My loan had no statement about heirs.
Yes, I would agree. That would be superfluous language and information that would not be within a loan document.Heirs can and do change in time too.So you have to wait till contacted by the estate executor or administrator of the estate.You can do down to the Wills department and see if his estate is being probated - at least you would know if there is an executor or that they are doing nothing.
I stated before that "The private party died 14 months ago and at that time I stopped making payments".The "private party" was worth millions. I think he did not report any of the interest that I paid him during the past 15 years and this may have something to do with the lack of contact. If I am not contacted would the rights of the heirs to collect timeout before the four years of non payment of the loan?
I understand you haven't paid for 14 months anything to anyone.Anything not paid correctly 4 years or earlier - they lost their ability to go after.The heirs also are bound by the 4 year statute of limitations - they have no greater nor lesser rights that the private party whom died had.So, if the heirs don't try to collect within the 4 year statute of limitations - they lose the right to go after you and you can and should pursue a quiet title action to remove the lien against the property.
20 years extensive experience in real estate law, foreclosure, finance, and landlord tenant law.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).