
Quoting
Mr. Knowitall
So.... $6,000 plus five years of interest left to pay?
Not exactly. The loan was made in 2002. Between 2002 and 2006, there was a period of deferment, payments made and interest accrued. The loan was current up until mid 2006 when I fell behind on payments and ultimately defaulted on the loan in June of 2006. The balance I owed just prior to defaulting was about $58K. After I defaulted, the lender accelerated the loan with a capped sum of interest. The $83K is a total of the balance at default plus interest plus about $3K the collection agency added.
For all we know this is still the original debt, in which case the statute of limitations started to run when you defaulted two months ago, or is a novation, in which case... the statute of limitations started to run when you defaulted two months ago. We don't have the information necessary to comment further.
Since the June 2006 default, the loan has remained in default. The collection agency and the original lender maintain that the original lender has always maintained ownership of the debt. After defaulting in June 2006, the debt was quickly sent to a collection agency. The collection agency gave me three options: 1) pay the $83K now; 2) don't pay anything and we will sue immediately; or 3) if you allow automatic debits for a period of one year at $500, and avoid being sued. (the monthly payments increased slightly each year) Each and every years since June of 2006, I was presented with the same three options, pay remaining collections balance, be sued or make payments for one year.
The loan was never brought current and has always remained in default. Interest was not accruing during this time as it had already been accelerated.
If you were paying under contract, the default would have occurred at the time you missed your most recent scheduled payment, which you have told us was two months ago. If you have some other theory, or have facts you have chosen not to share that could have the limitations period running from the date of your original default, share them.
My only theory is that I defaulted on the loan in June of 2006. The cause of action accrued against me at the time. That is with the statute of limitations began to run, and thereafter, I merely made payments on the debt after it default not tolling the statute of limitations.
A lender can be expected to want to know your present income and to also get information about your assets before agreeing to negotiate or discount your debt.