TN Foreclosure Law

[CAdamsRP]

My Customer purchased a time share in TN back in 2/2006. Took out a loan to get it, according to the contract it is considered a mortgage. Less than a year later he was unable to continue paying due to a job loss, last payment was on 9/2006, they called Blue Green and they said they would simply resell it to someone else and there would be no negative effect to the customer, they say they never heard or received another thing about it. I recently pulled a copy of their credit reports, and the timeshare is now on the credit listed as a Foreclosure, with a $0 balance, and it was marked late on 11/2011 and 1/2012. However, when i contacted BlueGreen to try and figure this all out, i was informed that the Deed is still in my customers name, the foreclosure never actually took place. my question is; <br style="color: rgb(51, 51, 51); font-family: arial, helvetica, clean, sans-serif; font-size: 13px; line-height: 16px; ">-Is there a statue of limitations for when they can Begin the foreclosure process, or file a default judgment? and if so has it passed? and if it has passed, what do i do about the incorrect listing on the credit report? i have already disputed it and BlueGreen sent me a big packet of information stating that the information they have listed is correct. But it is not correct! it never was a foreclosure, the balance is not actually 0, and how can you be late for a payment on a 0 balance?! <br style="color: rgb(51, 51, 51); font-family: arial, helvetica, clean, sans-serif; font-size: 13px; line-height: 16px; ">I work in credit for the purposes of helping people become home owners, so i already have this customer under a lease-option contract, so what does all of the above mean for the purchase of a new home for this customer, doing FHA loan, so need 3 years from the release of liability on the foreclosure, which would be the date they sold it to someone else... but since this never occurred i am kind of at a loss. should i try and get the credit changed to not reflect as a foreclosure? my fear is that even if i do that, the underwriter will see "timeshare" and "charge off" and it will be treated as a foreclosure anyway, with no release date. when does this guys 3 years start? can he force it into foreclosure now? or if he pays it off now.... then what will that mean for his credit and the purchase of his home? sorry this was somewhat scattered... Thanks in advance for any help! -Cynthia

[breeze]

I would check with the court records and see if a foreclosure was actually filed.

[CAdamsRP]

I would check with the court records and see if a foreclosure was actually filed.

 

it wasnt, the deed remains in my customers name, they never did anything with it when he stopped paying, but thats not his fault...

[CAdamsRP]

bump

[SportsNut]

I would check with the court records and see if a foreclosure was actually filed.

 

it wasnt, the deed remains in my customers name, they never did anything with it when he stopped paying, but thats not his fault...

 

The term "foreclosure filed" and ownership demonstrated by the deed still being in your clients name, are two entirely different matters. What you need to do is stop your concern for a moment of who owns the property and go to the clerk of court in the county that the property is located, (some are online others are not), and determine if a suit was ever filed against the property owner? If not, then there has been no foreclosure filed, but it is entirely possible that a fc was filed and not completed, as this happens quite often these days.

 

Statute of limistations on a mtg: Much longer than your client has been involved in the ownership of the timeshare, so there is NO angle there.

 

The reporting could be entirely accurate is a fc lawsuit was ever filed against the client. Your other questions are numerous and not as relavent as determining exactly what the status is as of today as to the fc filing. Once known, the other things can be addressed as well. You need the facts and only the facts and try to leave the emotions on the doorstep for the time being.

 

One other point here, TN also dore non-judicial foreclosures, so it is possible, depending upon whethere the docs executed were a mtg or a deed of trust that NO lawsuit or public records in suits exists. So contact the BlueGreen (whoever that is) and find out specifics!