Hello, I want to know if anyone had and information about this issue. Back in 2003 I purchased a house and during the summer of 2005 I lost the house due to a tax sale. My original lender sold the debt off to a second lender just before the tax sale and during the 30 redemption period they did not step in to pay the back taxes on the home so the house was sold by the city for back taxes.
The second lender charged off the debt and reported it as a loss on my credit report. A year later I received some new correspondence from a new lender who claims to have purchased the debt from the previous holder. My question is, does this lender have any rights based on the fact that the property was already sold for taxes in a tax sale before they supposedly purchased the debt? The new lender wrote me and stated that they understand that their lien was extinguished due to the tax sale but, the debt represented in the promissory note was not extinguished by the tax sale because no proceeds were applied to their account so they claim that the debt is still valid. Is this claim true or are they trying to call my bluff????
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