Can a foreclosure go to collections even though it’s passed the statute of limitations?

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Can a foreclosure go to collections even though it’s passed the statute of limitations?

I had a foreclosure 7 months ago which, to my understanding, the SOL is 6 months. I now received a letter from a collection agency for the entire balance of the loan, as well as numerous phone calls. How should I handle this? Can they still pursue the loan?

Asked on March 9, 2012 under Real Estate Law, Nevada

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

It may be too late to seek a deficiency judgment against you--or it may not be. It depends on when the foreclosure *sale* was. That is, a lender in NV may seek a deficiency judgment, or to recover that portion of the loan not paid off by selling a foreclosed property (such as at an auction), up to 6 months after the SALE. The date of when you were foreclosed upon does not appear to be the critical date--it's the date of when the foreclosing lender sold the property (if it can sell the property--depending on the real estate market, the property, etc. it may not be able to move it) that determines how long the lender has to seek money from the defaulting propertly owner.


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