Statute of Limitations Question

Alwayshopeful

LoanSafe Member
Jan 22, 2011
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Property located in Seattle, Washington
Last Payment to GMAC/GreenPoint - July 2010
Charged off by GMAC in 2011
Current Servicer: Ocwen (NCI credit letter)
Charged off again by Ocwen (per a letter) in 2016 - not sure how they can do that?

Goal: Settle, or Quiet Title - essentially trying to find my leverage, as property has good equity and I am considering selling, but don't want to deal with Ocwen and them throwing a dart to determine how much I really owe. The NCI letter I received in 2016, added $100K in fees/interest or whatever to the note balance -- no details to substantiate the payoff

I am digging through my files to see if I received a Notice to Accelerate from GMAC to establish a date for the SOL. I did find a 2nd Lien Settlement from GMAC dated January 2011. In includes a dollar amount, and states that the "certified funds as full and final satisfaction of your account. Upon receipt of the above-mentioned payment, GMAC Mortgage, LLC will release the second mortgage lien and cancel the Note and/or Credit Agreement." Soon after, we received their letter about filing Chapter 11.

Please advise if the settlement could be used for anything to establish a date for SOL, or?
 

Alwayshopeful

LoanSafe Member
Jan 22, 2011
64
2
8
I didn't include all of the information in the original post....(it may/may not be helpful.)

Property located in Seattle, Washington
Primary Residence
Last Payment to GMAC/GreenPoint - July 2010 (2nd HELOC - not purchase money mortgage)
Charged off by GMAC in 2011 (Just prior to them filing Chapter 11)
Current Servicer: Ocwen (NCI credit letter)
Charged off again by Ocwen (per a letter) in 2016 - not sure how they can do that?
Have never received any type of mortgage statement or request for monthly payment from anybody since my last payment made to GMAC in July 2010
No longer on my credit as of 1/2019
Recorders office shows NO CHAIN OF TITLE. Only record is from Greenpoint in 2006 (originator)
MERS shows inactive as of 12/2018; however, mysteriously, "someone" change MERS status to "Active" since 12/2018

First Mortgage with BOA: HAMP mod 2015
Property Value: Est. 1.1million
First Mortgage balance: $661K
2nd Mortgage balance: Actual amount owed when GMAC charged off $275K

Goal: Settle w/2nd mortgage, or Quiet Title - essentially trying to find my leverage, as property has equity and I am considering selling, but don't want to deal with Ocwen and them throwing a dart to determine how much I really owe them. The NCI letter I received in 2016, added $100K in fees/interest to the note balance -- no details to substantiate those numbers for the payoff, of course. I want resolution and don't want to play this wait and see game, as I want the ability to sell if someone comes knocking. Currently, we have had two unsolicited parties interested in purchasing.

I am digging through my files to see if I received a Notice to Accelerate from GMAC to establish a date for the SOL (in addition to the last payment date of 7/2010). I did find a 2nd Lien Settlement from GMAC dated January 2011. It includes a dollar amount, and states that the "certified funds as full and final satisfaction of your account. Upon receipt of the above-mentioned payment, GMAC Mortgage, LLC will release the second mortgage lien and cancel the Note and/or Credit Agreement." Soon after, we received their letter about filing Chapter 11.

Please advise if the settlement letter could be used for anything to establish a date for SOL, or? I would like to resolve this matter. I could find about 30K cash to settle. I am also willing to go the quiet title route, if I have what it takes to do so. I would prefer to settle and not end up in the courts, but I need to know if I have any leverage (beside how old the debt is) with Ocwen, or if they have any leverage (equity) on me. Due to the chain of title issues, GMAC/Greenpoint being dead, recent case law regarding some of these loans, and the fact the OCWEN is completely incompetent, I want to know all my options for resolving this situation.
 

just_me

LoanSafe Member
Sep 14, 2015
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The last payment made (July 2010) is the start date for the Statute of Limitations to collect. I'm not sure how the "2nd Lien Settlement letter" may help if you don't have a corresponding proof of payment to go with it. You can release the lien with proof of corresponding payment if this happened.

I don't know if it's possible to quiet title on a second lien or home equity line independently of the first? If Greenpoint is the party/lender, since they have bankrupted(?), you may have to obtain information on who, where and how to serve for legal process or the proper address for negotiating a settlement.This is usually found in Secretary of State filings under the name of the reorganization if it is in BK.Some States process 'service' through their Secretary of State when companies are no longer in business. (I'm assuming MERS is not listed as nominee for lender)

I agree with the concept of avoiding Ocwen. If they feel you have enough equity they may foreclose even though a second/home equity usually doesn't. (For which you can respond that they are beyond SoL if that is the case) The charge off's signal uncollectability (or a sale to debt collector) but is in no way a dishcarge if you have a lien as security. Ocwen now sends certain notices due to regulation, so this is their latest accounting. I am surprised they didn't make some type of demand or offer to modify with it. I would try to settle with a low ball offer since the SOL is in your favor. Maybe use the prior settlement offer as a template? Also don't be fooled by post card solicitations as legitimate offers to buy, they may be investors wanting to buy at a discount. The Lender (GP) doesn't really have to do a thing but wait for you to sell to collect the lien. Look over the contract. They will want lien paid in full upon sale before they release the lien. You going to have to involve Ocwen/Servicer sooner or later. MERS activation could signal a change. I no longer check this because they required my SSN last time I tried and I was disinterested in being tracked.

Maybe others will chime in.
 

Jzone

LoanSafe Member
Jun 20, 2017
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Check with your state or even your county register of deeds for statue of limitations. I'm in Michigan and there are no statute of limitations for real estate transactions. My second was discharged through chapter 7, but the lien was transferred to a debt collector.
In my situation, the lein will only be released if we agree on a settlement to release the lien or they simply realize that cant collect and release it anyway. I have also looked at quiet title process and may be something I look at down the road. I'm only 3 years into this, so I know it may be many more years until its settled.
 
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Alwayshopeful

LoanSafe Member
Jan 22, 2011
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WA State = 6 years for contracts SOL. I am past that; however, I have read conflicting information. Some say that the clock starts ticking on the last payment, and some say the clock starts ticking at the Maturity date of the loan (since it is an installment loan) My maturity date of the HELOC is 7/2021.