Has the limitations period passed for an accelerated balance due? However, payments that were due within the past six years are not defendable under a statute of limitations defense because it has not run. What this means in the scenario we are considering is that if the lender waits years to sue on the unpaid mortgage deficiency or second mortgage, because each installment has its own deadline, the statute of limitations would bar a claim for any payment that became delinquent more than six years before the lawsuit.ĭefaults older than the statute of limitations does not make that part of the debt void, but the statute of limitations should be asserted in court as a defense. Each missed payment (usually monthly) kicks off its own limitations period. If the lender did not accelerate the due date – meaning that if the borrower defaulted on payments (how many depends on the contract), the lender called the entire outstanding amount due immediately – then for each installment payment missed, the statute of limitation began to run for that one payment only, according to Virginia statute. For a mortgage, the statute of limitations is usually six years in Virginia. The statute of limitations is a legal term meaning basically a time deadline for filing a certain kind of lawsuit. Has the statute of limitations – or legal deadline for suing – already passed for any of the past-due payments? The legal defenses to such lawsuits are complex and elusive in some cases, so legal counsel from an attorney with extensive understanding of Virginia consumer law can be very important. Talk to an experienced consumer protection lawyer to understand the potential legal remedies in Virginia. What can a Virginia consumer do when – years after they went through foreclosure on their home because they could not make the payments – they now face a lawsuit on a deficiency balance on the mortgage, perhaps because they were underwater on the debt-to-equity ratio? Or when they unexpectedly face a demand to repay an old second mortgage on foreclosed property?
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