More Troubles for NH Foreclosure Properties Homeowners- By: John Cutts

Description : Troubles for New Hampshire foreclosure properties homeowners started when they became delinquent on their mortgages. Then foreclosure notices were filed, followed by eviction. Letting go of their properties by allowing banks to foreclose on them and moving on with their lives were the best way that homeowners of foreclosure properties can do to end all their troubles.

Or so they thought. Thousands of foreclosure properties homeowners never consider that debt collectors can still come after them through loan deficiency. If foreclosure properties were sold during auctions for less than the worth of mortgage, expect debt collectors to go after homeowners for the difference of their loan.

For example, a homeowner who lost his home in 1994 started receiving calls from a debt collection company he has never heard of before seven years after the foreclosure, telling him that he still owed debt from his foreclosed home and demanding that he pay it.

The homeowner has rebuilt his credit and acquired a new home when the company started harassing him. The debt collection company claimed that the homeowner owed it about $28,000. The homeowner called the bank where he took out the loan and the bank said that he did not owe it anything.

After numerous demands to pay, the debt collection company filed a case against the homeowner claiming that it had acquired a bundle of unpaid debts from the bank where the homeowner took out his mortgage.

Unfortunately, the homeowner’s loan deficiency was included on the bad debts purchased by the debt collection company.

A 1998 personal credit report worked in favor of the homeowner. This credit report showed that the home loan has been written down as bad debt.

Homeowners of foreclosure properties being hounded by debt collection agencies after foreclosure can use a legal doctrine which makes it illegal for debt collection agencies to wait for the interest and penalty fees to pile up before making the move to collect on homeowners’ debt.

Franklin Pierce Law Center director of clinical programs Peter Wright anticipates that loan deficiencies will become a problem among New Hampshire foreclosure properties homeowners.

He explained that loan deficiencies spawned from the drastic decline in home prices and the exorbitant balances that distressed homeowners have on their mortgages.

The statute of limitation for mortgage loan debts in New Hampshire is 20 years.

Article Source : http://www.realestateproarticles.com/

Author Resource : John Cutts has been educated in the finer points of the foreclosure market over 5 years.