I receicved a collection notice on a debt that was I believe was secured by my home.  After losing my job and my home, is this a valid debt? And if it is, do I have to accept the payment plan they make that I can not afford? Or can I make smaller affordable ones?

Asked on June 1, 2009 under Real Estate Law, Washington


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If you affirm a debt by informing the collection agency that you have this debt -- statute of limitations doesn't run and you are now liable to pay. If you believe your debt was discharged through bankruptcy (i.e., not just a simple foreclosure), then don't affirm your debt.


A foreclosure doesn't mean you don't owe the money.  Many states have what are called deficiency statutes.  If the bank sells your home for less than what you owe the bank, the bank can come after you for the difference.

If you are worried that you are being scammed, contact your State's Dept of Financial Institutions:

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