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  1. #1
    Join Date
    Sep 2015
    Posts
    2

    Default Can a Debt Collector Pursue Your Home Over Credit Card Debt

    My question involves collection proceedings in the State of: California

    My parents are divorced, and have been for well over 10 years now. However they are both still listed on the mortgage for the house. A stipulation of the divorce was to keep the house until all the kids finished college and/or moved out and became independent. But as a result of the weak economy the house has been a rotating door of the kids moving back in. Beyond that they both became complacent with the living arrangements and life just continued.

    The situation I'm trying to help my dad with is that he just received a notice in the mail that he is being held responsible for delinquent credit card debt that my mother incurred on her own. The debt is somewhere around $13k and they're tacking on about $7k in penalties and fees. The notice implied that he needed to settle the debt for her or the house could be put up for 'short sale' and sold for considerably less than the value.

    So I really want to know is can the collections companies make that claim? Is our home at risk of being taken or having a lien placed against it? What can my father do to protect the house from these collectors?

    Any advice is appreciated.

    Thank you,
    Kooie

  2. #2
    Join Date
    Mar 2013
    Posts
    16,671

    Default Re: Ex-Wife Default on Cc Debt, and Collections Coming After Mortgage Consignor

    Quote Quoting Kooies
    View Post

    So I really want to know is can the collections companies make that claim?
    Sure, they CAN make the claim. They already DID make the claim. But it's baloney. It's a scare tactic that collection agencies use to scare people into paying.


    Quote Quoting Kooies
    View Post

    Is our home at risk of being taken or having a lien placed against it?
    There's only a remote chance of that.

    First the creditor would have to file a lawsuit and get a judgment. A judgment can be recorded and become a lien against the property on paper but it wouldn't likely be worth the paper it's printed on because CA has a pretty generous homestead exemption which means the home is exempt from actual attachment up to the following limits: $75,000 if single and not disabled; $100,000 if family and no other member has homestead; $175,000 if 65 or older or if physically or mentally disabled; $175,000 if creditors are seeking to force sale of your home and you are either (a) 55 or older, single and earn under $25,000 per year, or (b) 55 or older, married and earn under $35,000 per year. Sale proceeds are exempt for up to 6 months after sale.

    Quote Quoting Kooies
    View Post

    What can my father do to protect the house from these collectors?
    He can be knowledgeable and vigilant.

    He can google the FDCPA and learn his rights.

    He can demand validation of the debt.

    He can send a cease and desist letter to the collection agency.

    He can check his credit reports for free from all three bureaus at www.annualcreditreport.com

    He can seek details of the debt from your mother (or you can) and find out the dates, amounts, get copies of statements and find out when the default occurred to determine if the statute of limitations has run out. It's 4 years to file a lawsuit in CA. If your mother defaulted more than 4 years ago a lawsuit would be time barred.

    Get him started on all that and if you have more questions come back to this thread.

  3. #3
    Join Date
    Sep 2015
    Posts
    2

    Default Re: Ex-Wife Default on Cc Debt, and Collections Coming After Mortgage Consignor

    Thank you for the quick response, I'll get started on this and see if we can't get out of this mess. I'll also start digging for information from my mother and who knows, might be able to dig her out of her own hole.

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