Many people believe that if they take care of old debt issues, they will have a better chance at getting approved for a mortgage faster. It’s important to be aware that this isn’t always the case. Indiana has a six year statute of limitations on for filing lawsuits for old debt.
Consider this scenario:
You have a phone contract from 2012 and you never ended up paying the $300 early-termination fee. Eventually, they stopped sending you letters and you forgot about it. This six-year old bad debt can’t lead to a lawsuit, thanks to Indiana law. The statute of limitations won’t erase the debt, but they can’t sue you anymore. Instead, they sold the debt for very cheap to a debt collection company. Suddenly, you’re getting collection letters from a collection agency, and you’re hoping to buy a home next year. Your first response may be that you should immediately pay off that bad debt. Right?
If you start paying off the debt to the new company or even pay the debt off in full, it will stay on your credit report for another seven years, starting the clock all over again! So, if you get a collection notice, check the fine print carefully. A time-barred debt will generally have a small paragraph that explains that you can no longer be sued for that debt! Yet, as soon as you pick it back up again it stays on your credit report longer.
This is something to take into consideration. If you have any questions, your lawyer or mortgage broker can certainly figure out your safest option.
Search area properties now:
Are You Ready to Buy a New Home?
If you’re interested in moving to a community near Evansville or Jasper, Indiana, check out our listings. Become familiar with the area. Before you start shopping for a home in Indiana, it’s a good idea to explore areas you might like to live in — that way you can get a feel for what properties are available and how much you’ll need to spend. We’ll help you find homes for sale in the most beautiful parts of Indiana.
Let us know if you want us to be on the lookout for Evansville or Dubois County homes with solar arrays, geothermal systems or other green upgrades too!
- Sell-4Free’s Featured Dubois County Homes
- Open Houses in Dubois
- Virtual Tours
- Dubois 3 Bedroom, 2 Bath
- Homes in Dubois w/Finished Basement
- Dubois w/Walk out Basement
- Subdivisions in Dubois
- Condos in Dubois
- Dubois Farms, Lots & Land
- Luxury Homes
Thinking of Selling Your Dubois County Home?
On the other hand, if you’d like to sell your Dubois County real estate, we’d love to help with that too! We offer a completely FREE Comparative Market Analysis (CMA). Zillow’s zestimates can be off by as much as 12 percent! Obviously, to make any decisions, you need to know the actual value of your property, right? A 12 percent difference could be a deal breaker when it comes down to it. Yet, if you contact us today, we can get you a detailed report and the estimated value for your home based on today’s market. Plus, we can get that to you usually in less than one day. So, request your FREE home valuation for your Dubois County home today!