Hi, Mike, Thank you for taking the time to give me the additional information,
It is my pleasure to assist you and even greater pleasure to tell you that you can tell them to take a hike and a really long one, at that.
In Nevada an action must be brought within six (6) months from the date of foreclosure, otherwise the mortgagee will be forever barred. If the first mortgagee foreclosed in May, 2011, the second had until November, 2011 to sue you.
Please allow me to explain how this works; a mortgage is a security interest in real property and it is given as collateral for the repayment of the loan. Once the first mortgagee foreclosed, the second mortgagee lost its collateral, but the foreclosure did not wipe out the debt. Therefore, the law gives them the right to sue the borrower for repayment of the debt, but can only do so within 6 months of the date on which the first mortgagee foreclosed.
Very often a second mortgagee who has lost its collateral (the mortgage) because of foreclosure, will sell these accounts to collection agencies for pennies on the dollar, so that anything the collection company manages to squeeze out of the borrower is "gravy" for them. This explains why the collection company was willing to settle for 50% of the loan amount with you. They knew that they could not collect anything from you, and they were hoping that you did not know this fact.
Notify them in writing, by Certified Mail, Return Receipt Requested, and say something like this,
The debt you are attempting to collect is time barred. (name of first mortgagee) foreclosed on my property in May, 2011. The debt you are attempting to collect was that of a second mortgagee. Second mortgagees and other junior lienholders have 6 months from the date of foreclosure by the first mortgagee to enforce a debt, after which they are time barred. The subject debt was legally enforceable only up to November, 2011, after which it became totally unenforceable. I trust that this explanation is sufficient avert any future attempts on your part to collect anything from me
Very truly yours,
The Fair Debt Collection Practices Act provides a fine of $1,000 for each time a creditor telephones the debtor once he has given notice that the debt is unenforceable. I purposely did not include that in the letter because if you keep a record of their calls to you after receiving this letter, you can sue them and easily make a few thousand dollars. You can sue them in Small Claims Court in which you do not need a lawyer and you will not incur any legal fees. So, if the jurisdictional maximum in the Small Claims Court in your County is $6,000, let them call you 6 times, sue them, and get a judgment against them for $6,000. Please be kind enough to rate my service to you as Excellent Service so that I can receive credit for assisting you, otherwise I do not receive credit and do not get paid. Thank you for understanding,
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