Attempted Collection after 14 years

[dlangdon]

In 1989 we purchased raw land and secured it with a Deed of Trust. In 1996 we intended to sign the property back over to the people holding the deed of trust. Some mistakes were made in the paperwork and everyone basically forgot about the property as it really wasn't even worth what the HOA fees were.

In 1997 we attempted to contact the holders of the Deed of Trust but they'd moved and we didn't know how to get ahold of them. It's been 12 years and we've never heard a single thing from them.

Last week we heard from a guy who wants the property. In researching out the property he figured out there was a Deed of Trust on it, found the holders of this and got them to assign it to him. Now he's comming after us threatening that we owe years and years of interest and we have to settle by either paying the original loan amount or by selling him the property for FAR below market value. Or, he'll start foreclosure proceedings.

Our last payment was in 1996. He claims that a Deed of Trust NEVER goes away from a property. He's actually makde lots of threats and claims that I suspect are not accurate. Isn't there a statute of limitations here? And, that since we haven't heard from anyone in 12 years and did not know how to reach them and even tried that there's no way we can be on the hook for 12 years of interest.