Under Texas law, mortgage companies that foreclose on a Texas home can pursue the former homeowner for two years to collect on any deficiency balance owed on the mortgage after foreclosure sale.
Since your foreclosure took place in March, 2005, I would suspect that the statute of limitations to sue you to collect on the deficiency balance has expired. However, consult with a Texas attorney to determine what legal recourse, if any, the creditor still has against you.
If you determine that the statute of limitations has expired, then you likely need not worry about the mortgage company suing you to collect on the deficiency balance owed on the mortgage. However, you should know that the expiration of the statute of limitations generally does not prevent a creditor from calling or sending you letters to try to collect on the debt. It only provides you with an absolute defense in court if the creditor tries to sue you for the amount still owed on the mortgage note. Again, you should speak with your attorney to determine what liability you still have for this outstanding mortgage balance. To learn more about foreclosure, I encourage you to visit the Bills.com Foreclosure page.
Credit report and foreclosure
Concerning your credit report, the foreclosures should appear on your credit report for seven years from the date of the entry of the foreclosure judgment. In your case, this means that this listing can likely appear on your credit report for at least four more years.
Unfortunately, there is not much you can do to remove a foreclosure listing from your credit report if the entry is correct. However, if you are not worried about this listing appearing on your credit report for the next few years, it may not be worth your money to repay this mortgage deficiency balance. For more information about credit reports and credit scoring, I encourage you to visit the Bills.com Credit Help page.
You should understand that the fact that your former mortgage holder mailed you a letter asking you to make payments on your old delinquency balance does not mean that you are legally obligated to pay the debt. If the statute of limitations has expired, then your best option may be to not pay the debt and to simply let it fall off your credit report with time. Again, you should discuss the situation with your attorney to determine the best solution available to you given your financial situation.
I hope this information helps you Find. Learn & Save.