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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
Satisfied Customers: 41221
Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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I had a mortgage in Michigan that was never recorded for $275k(no lein was placed on my pr

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I had a mortgage in Michigan that was never recorded for $275k(no lein was placed on my property). I later got a second mortgage/cash out for $237k. I was then foreclosed on. I lost the house. The first mortgage holder got the house. Now I am being pursued by creditors. It is possible that there's a judgement against me. i was never served. what is the likelihood of the judgement?
I then gave up, and hid, essentially. I reinvested what I had left of the money in other things, and have managed to hold on to it. It's in property in a LLC name, other than my own.
Thank you for your question.

I am sorry that you are in this situation.

When did the foreclosure take place? Besides this property, did you have any other assets at that time? Also, for how much are you being pursued?
Customer: replied 5 years ago.

I'm not sure for how much I'm being pursued. However, at a family member's address, I got a request for production of documents from a title company that I believe was associated with one of the transactions. The date I stopped paying was 12/2006, but the date reported was 8/2009.

Thank you for your follow-up.

The best way to know if you are indeed being pursued is to run a credit check on yourself. If a judgment was obtained against you, it will appear on your credit report and you will then know how to react toward potential creditor calls. As for creditors, the state of Michigan has a 2 year statute of limitations on foreclosure actions. That means that if a judgment was NOT obtained against you, and creditors are called, speak with them, point out the statutory limitation, and explain that if they persist, you may choose to pursue them under the FDCPA, or the Fair Debt Collection Practices Act.

Hope that helps!

Customer: replied 5 years ago.

By "2 year limitation" do you mean starting a foreclosure or finishing one? My credit report still says "foreclosure process started" and the other account holder's info says "foreclosure" and +120 days past due."

If they did foreclose, do they then have up to 6 years to get a judgement? And if that's the case, is it true it's enforceable for up to 10 years?

Is there specific language that would indicate a judgement?
If there's a judgement, is my LLC property at risk?

Thank you for your follow-up.

By 2 year limitation, I mean once the forclosure is concluded the lender has 2 years to pursue a judgment. If they foreclosed they have TWO years to get a judgment, not six, at least based on how Michigan law is currently drafted. But once the judgment is obtained, it would be enforceable for up to 10 years in Michigan, and if you move to other states, potentially longer.

The language you are seeking would state 'judgment', and if none of that lis listed, either a judgment was not obtained or not recorded--most likely the former.

As for your LLC, there is a potential issue of piercing the corporate veil if you are the only shareholder, and you treat the LLC as your alter ego, but that is still a fairly low risk.

Good luck.

Customer: replied 5 years ago.

I greatly appreciate your help in understanding this matter. It appears I have no judgement, since none is on my credit report. (except the letter I received does refer to "Judgement-Creditor" vs my name- does that indicate a judgement or just a possible one?).
A couple more questions: How do I know when foreclosure is concluded? It has been 6 years but it still says "foreclosure process started."Do they have 2 years from the start or 2 years from the finish?

Second, does that letter referring to "judgement creditor" requesting production of bank documents etc., indicate a judgement, and

third, if they have 2 years to foreclose, does it start from when I last paid, when they report it as "late," or which? There is a huge time gap there.
Lastly, how do I find out about this debt, and safely contact these people without putting my assets at risk? Sorry for so many questions/so complicated. You have been a lot of help!

Thank you for your follow-up.

A 'judgment-creditor' would mean that a judgment was issued against you somewhere. However you would still have a right to demand that the party contacting you prove it by sending you a copy of the court order so designating.

To find out when foreclosure concluded, do a title search against your property--if it is in their name, foreclosure concluded (it concludes when title is transferred to someone else). You can then backtrack and calculate how long ago the transfer took place and whether or not you are still within the statutory period.

Contacting them, potentially via an attorney, DOES NOT place your assets at risk since contact is not the same as pursuing a judgment on their end. But ultimately there is always some risk in communication, but at least that will tell you exactly what may be out there against you.

Good luck

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