So, my mortgage question had lots of views and no answers. Gonna try a different approach. Searched more. Found that the new company that has the 2nd mortgage I am working on verifying is an outside collection agency. I imagine they have purchased the debt for quite cheap. They are not trying to sue/collect because it is out of SOL. Question: I have been researching and researching. Ran across a law website that mentioned that if a mortgage is sold to an outside collection agency, the original lender has to remove the lien on the home or risk being sued. Would any of you know if there is any truth to that? Makes sense, because if someone paid to a collection agency, they shouldn't have to then pay off a lien on sale, right? Anyone? Sure could use the experts amazing help on this one!
Jam, When I sent debt validation to the CA, they sent me a letter (lied about it being certified) w/ copies of the original loan papers. It just says the normal this is an attempt to collect a debt, any information will be used for these purposes, blah blah. Also, they referenced another lender b/c this debt has been sold several times since my house was part of the massive housing crash market. I don't think the CA knows that this debt is out of SOL. I am about to inform them. I am just wondering if this is my best strategy. Thanks for any help all! Reatha
You said that you had come across a legal website that had specific legal advice about a lender being able to be sued, if they didn't remove their lien when they sold the account to a JDB (which would seem like common sense, because they are no longer a party to the debt that the lien was to secure). Did they provide specific case law references which you could read to verify that that is how the law reads? One thing that I always try to do, is give the exact case law whenever possible (unless it's something that I want to make sure that if my adversary stumbled on the post, it would give them the added insight of where I am going). Determining if it's a CA is a multi-prong test. If it fails even one prong, it fails. So 1) they use interstate commerce to 2) collect CONSUMER debts 3) that originally were owed to someone else 4) that were in default at the time that they obtained the account 5) who is not a government employee, process server, or debt councilor who is bona fide acting in those official capacities.
@Jam, As usual, your answers are so helpful! I'm now going to research specific case law references. I have gone over each "prong," and this acct. has def. been sold to a CA. One in which, I might add, took over a year to "attempt" a debt validation. One in which, has ignored my certified letters and has made false claims. So far, they seem very irresponsible regarding the law. Everything I can get my hands on, says that I would need to contact the OC (lender) and make them aware of the sale to CA, and ask them to remove the lien. This whole thing is such a mess. Any more suggestions are always welcome, and I do certainly thank you for the awesome reply.
Nothing like an irresponsible CA to put money into our pockets... Of course, once I would have the exact law references I would add them in. But this would be the letter that I would right. Of course, I do realize that I am aggressive, and sometimes even to the point of being snarky or flippant, that's just my special kind of charm.
@Jam, Thanks so much for the letter! You ARE aggressive, aren't you? I love it! The CA folded and zeroed out my balance (yes, I got it in writing). However, I assume the OC lender would not know this. Still gonna try and get the lien removed. Hey - one never knows! I'm not a total Bi___, I just got completely screwed by this home lender. And, before anyone starts yelling at me - I do pay my bills! Thanks, Jam!
Oh, I am usually mild in the snipplets that I post here, realizing that not everyone has it to come off as aggressive.
