Wrong jurisdiction

[Vetter]

Jurisdiction

New Jersey

What is the Statute of Limitations for a commercial mortgage taken out by an LLC and guaranteed by the managing member. Debt was settled by Deed in Lieu of Foreclosure 11 years ago. The LLC wss disolved. There was no shortfall. I have the filed Deed but not the signed release. I do have the unsigned release. Please help

 

[Vetter]

Took a commercial mortgage out from a bank in NJ for a property in PA. Settled it 11 years ago by way of a Deed in Lieu of Foreclosure. I live in Florida. Now NJ bank filed a suit against me and my LLC for unpaid money through a NJ Superior court. I provided the Deed for proof. Question is are they filing in the wrong jurisdiction? They filed in NJ, I live in Florida. I also think this debt is time barred, beyond the Statute of Limitations. It is a commercial loan with a personal guarantee. Please help

 

[army judge]

Took a commercial mortgage out from a bank in NJ for a property in PA. Settled it 11 years ago by way of a Deed in Lieu of Foreclosure. I live in Florida. Now NJ bank filed a suit against me and my LLC for unpaid money through a NJ Superior court. I provided the Deed for proof. Question is are they filing in the wrong jurisdiction? They filed in NJ, I live in Florida. I also think this debt is time barred, beyond the Statute of Limitations. It is a commercial loan with a personal guarantee. Please help

I suggest you consult an attorney or two licensed to practice in your current state of residence.

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A deed in lieu of foreclosure is a legal agreement where a homeowner/borrower gives the legal title of their home to their lender. In exchange, the lender releases you from your mortgage debt.

While you'll still lose your home as a result of this process, you'll be relieved of your mortgage debt obligations and responsibilities.


Homeowners who decide not to put up a fight to keep their home or to stave off foreclosure can instead pursue a deed in lieu of foreclosure. It is essentially a legal and binding document that transfers the title from the homeowners to the bank that holds the mortgage.

This process means signing over any legal right to your home, and handing over both the deed and the keys to the house. In exchange, the lender agrees to immediately release the borrowers from their mortgage obligations. Lenders tend to be open to this option. After all, when a homeowner comes to a bank and says, "take my house, I know I can't pay," a lender is saving the costs that come with a traditional foreclosure process.

The same goes for the homeowner. "They give the house back to the lender to avoid the hassle of dealing with the legal process and harm it causes to their credit," explains Eric Wilson, director of operations at Better Mortgage, an online direct mortgage lender in New York City.

This approach was especially common in the early 2000s, says John Moran, a home mortgage specialist in Telluride, CO. Banks would often make deed in lieu of foreclosure a more appetizing option by throwing in some cash to sweeten the deal. Often called "cash for keys," the option allows homeowners to leave the home in good condition and provide the deed in return for a cash payment.

Be aware that some mortgage agreements don't allow for a deed in lieu of foreclosure.

"Most loan programs have specific guidelines that determine what options a homeowner can pursue when they go into default," Wilson says.

Take the time to read the legal documents carefully.

You may want to have an attorney assist you with reviewing and understanding the important legal documents. The lender's attorney isn't paid to protect your interests.

You'll definitely want to make sure that the deed in lieu of foreclosure has a provision that expressly states that you'll no longer be responsible for paying the mortgage debt, and the lender has absolutely no right or ability to go after you for a deficiency judgment https://upsolve.org/learn/deficiency-judgment/ .







https://www.realtor.com/advice/finance/deed-lieu-of-foreclosure/
...

 

[army judge]

What is the Statute of Limitations for a commercial mortgage taken out by an LLC and guaranteed by the managing member. Debt was settled by Deed in Lieu of Foreclosure 11 years ago. The LLC wss disolved. There was no shortfall. I have the filed Deed but not the signed release. I do have the unsigned release. Please help

Do not be confused about what statute of limitations means.

It is not a kind of time limit that the creditor has to collect debt.

In most states, debt collectors can attempt to collect debts as long as desired.

The statute of limitations restricts the time the creditor (debt holder) has to file a lawsuit against the debtor.

While a collector can try to collect the debt forever, he/she is limited in how long he/she can use the court system to collect the debt.

In PA - for example -
Contracts: 4 years,

Contracts under seal: 20 years.

Negotiable instruments: 6 years (13 PA C.S.A. .§3118).

Pennsylvania Commercial Debt Collection Laws Explained - The Martin Law Firm


SOL in PA? | Credit Magic


In Debt? Here's the Statute of Limitations in Every State.

 

[adjusterjack]

Being served a lawsuit goes way beyond any help you can get from strangers on the internet.

You need a lawyer.

 

[flyingron]

It depends on the actual nature of the suit. If it was directly related to the lien on the property, it would likely have to be filed in the state the property was in, but this appears to be some contractual issue subsequent to your deed-in-loo, so in many cases the plaintiff can bring it in your state, possibly their state, or the state that action arose in.

Contracts have a six-year SOL in NJ, but that can be tolled (put on hold) and it can be reset by certain actions on the party's part. Judgments last a very long time (20 years) so if somewhere in the past even a default judgment has occurred, they can continue trying to recover the money.

As AJ points out, even if you could relate all the details (which you probably can't), this requires an attorney to look at the entirety of the situation rather than trying to grasp on illusory legal principles.