Question Before Buying A House
im in the process of buying a house soon, my question is, if after i purchase a new home can and old creditor put a lean against the home? the old creditor is a reposseion of a car that will turn 7 years old in oct. should i wait til the after the old bill turns 7 years old, or is it safe to buy now?
I dont understand, is this car still in YOUR POSSESSION???
If they re-possessed already, and you are referring to your CREDIT report, then that doesnt matter as long as you have a method of funding that doesnt concern 1 bad mark on your credit. go ahead and buy the house.
More importantly that was a PERSONAL OBLIGATION.
As an investor you should have an LLC or a Corporation (talk to lawyer and accountant regarding your choice of which to use).
Buy property in corporate name.
I dont think the repo guy will be savvy enough to even find your corporate entity.
Good Luck,
Get going,
N.
If there is a deficiency judgement for a repossessed car it is in theory possible they could attach a lien to your real property, however; it is highly doubtful as you have no equity in a newly purchased house. Second you could put it into trust almost immediately after purchase in which case a judgement wouldn't attach to it.
Personally I think it is a non issue
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for certain causes (like being out of state, or impossible to find), but if the stattute has indeed run out, you have an absolute "affirmative defense" to a creditor's lawsuit ... if you use it when you answer the creditor's complaint (use it or lose it). And that being the case, it's unlikely the creditor will try to sue.
On 2004-02-07 23:22, mike3367 wrote:
im in the process of buying a house soon, my question is, if after i purchase a new home can and old creditor put a lean against the home? the old creditor is a reposseion of a car that will turn 7 years old in oct. should i wait til the after the old bill turns 7 years old, or is it safe to buy now?
Leaving aside asset protection strategies like trusts and purchasing in a corporation or LLC, let's look at what is really going on.
There are two ways this debt may have an impact. The first is fairly simple to explain: It may stay on your credit report for 7 years after the Date of Last Activity, which is a date 180 days after you were first "delinquent" (30 days behind) in your payments (and never got caught up again). So one task is to determine the true DOLA, because re-aging is common ... companies do it in order to avoid the requirement that the derogatory tradeline (TL) drop off at the end of the 7.5 year period. Typically also, the TL can be disputed a few months early and the CRAs will drop it. Dispute as "not mine" as little as one to two years after a tradeline goes bad. If it drops, it drops ... not all creditors keep enough record detail to satisfy a dispute notice from the CRAs. You want the TL gone, because the mortgage underwriter may demand you settle it ... and who wants to go back and pay something 7 years old just to get amortgage at a higher rate, when if it had been disputed away, they would not only not have to pay it, they would get a lower rate.
The second part of the problem is has this creditor gotten a judgment against you/will this creditor get a judgment against you. I'm assuming that nothing is showing up in the "pubic record" part of any of your CRA reports. If it were, you would probably not have phrased your question as you did ... you'd be saying "What do I do about this judgment?" or "What do I do about this public record?". That being the case, the thing you need to know is what is the statute of limitations in your state for a car loan (written contract). Chances are it's less than 7 years. Just because the debt is beyond Statute of Limitations doesn't mean you can't be sued. Sometimes the statute can stop running (be "tolled"
Without a judgment, a creditor is not in the position to place a lien. And if the creditor is unlikely to get a judgment, the underwriter shouldn't be worried about the TL, but the fact is that the underwriter will worry and will want you to settle it ... if the underwriter ever sees the TL. Make the TL go away!
If the debt is beyond SOL, dispute the TL secure in the knowledge that you can brush off any attempt to collect. If an attempt to collect does materialize, use "Debt Validation" to make the collector go away (see http://www.creditinfocenter.com, http://www.creditboards.com, http://www.creditnet.com).
You might also search those boards tor "Whychat"'s site ... it's a long URL with "WebTV" in there somewhere ... but he has a lot of great info on the hypertechnicalities of Repos. Basically, if not all i's are dotted and t's crossed, the deficiency is proably not collectable. [ Edited by flacorps on Date 02/10/2004 ]
Actually when you buy a property anything that has been filed against you and not satisfied will show up if you sell or refi the property. The company that filed against you the first time does have the right to do it again after so many years. The problem comes if the company that issues title insurance on the refi or new owner requires it to be paid. You must check you state laws on this matter.
Lori
[addsig]