I can't believe it, the power of the discharge order is STRONG (citimortgage)

[mysticspirit25]

My good friend who filed CH7 in 09, had 2 mortgages against his property. He also had a repossession. He recently re-opened his case to go after the creditor who sent him deficiency notices in regards to the repo, demanding money. While he was at it, he had $86k discharged on a Citimortgage 2nd. He never reaffirmed, and it eventually was purchased by the insurer. Originally they had offered to settle for 10%, but he told him no, and he told them he reopened his BK, and was going to go after them for pulling his credit (they said they had PP as they were an insurer, but really did not), plus they sent him bills for months stating an amount due. He drafted a complaint last night and emailed it to the loss mitigation dept, and today they said they were wiping the lien out if he agreed to not sue in BK court. He showed me the settlement agreement, they paid out over 80k to Citi on a claim and are just dropping the lien and releasing the property.

Seems too good to be true, but it is. I guess the threat of an AP really does scare some people.

[panda]

Wow! I am impressed. If this is true the little guy may have finally gotten ahead in this mess of dumb things creditors do to make one miserable.

[BrokeinMD]

Hi Mystic, interesting story. Was the repo of a vehicle?

[mysticspirit25]

Hi Mystic, interesting story. Was the repo of a vehicle?

Yes, it was a motorcycle voluntary repo. Honda was properly listed on the schedules and even on the questions they ask you on the petition about payments over $600 and repossessions, and a year and a half later they sold at auction and sent a letter with the deficiency balance and a demand for payment in bold. They now have an AP on their way too.

[BrokeinMD]

Wow....If I recall correctly, your friend filed pro se, right? Did he/she walk from the house or stay?

Your friend is brave to face this battle alone. Is he/she an attorney themselves, crazy, or just straight up Bold? Bravo, whatever the situation!

[BKorbust]

Very nice I'd love to see more of this. Very impressive for a pro se filer.

[chap7girl]

Wow!. So, does this mean after a mortgage is discharged, even if you stay and pay, that the mortagee cannot send statements or bill you? I was discharged in 12/09 and was sent statements with a balance owed until sept of 10", then they started sending the voluntary payment statements. Very intetested to hear more.

[keepsmiling]

Love it!!

[sealpup]

That's great news!! Do you happen to know who the insurer of the 2nd mortgage was?

[feelingnutsy]

Pardon me---what is PP?

[mysticspirit25]

Wow....If I recall correctly, your friend filed pro se, right? Did he/she walk from the house or stay?

Your friend is brave to face this battle alone. Is he/she an attorney themselves, crazy, or just straight up Bold? Bravo, whatever the situation!

He is not an attorney, but he is a little crazy and very, very bold. He is the same one I refer to about a year ago in posts where his son hit him in the head with a wrench, and he hit him back (was 17 at the time) up side the head with an open hand (just a little too hard) and busted his eardrum and his mother (the ex) sued for $20k, got a judgment (which he attempted to discharge), and she (the ex) filed an AP and he went crazy filing all kinds of BS motions and she just gave up and dropped her AP. He filed so much with the court her lawyer said it would cost more in retainer to file responses then to respond, so her lawyer quit. Yeah, he is a little bit crazy i'd say.

And yes, he stayed in the house, first was with Wells, they refused to do a mod, so he got an executive on the line (got the contacts at jigsaw.com), and did a 3 way and canceled the insurance and said he was getting ready to set fire to the house (not illegal to burn your own house down in this state), and the next hour the mod docs were on the way, so yes, I would say very crazy. His housing payment went from almost $2000 a month, to $900/mo, he is my best friend so I have very intimate details of all of this.

Funny thing is he is going after Wells now for pulling his credit 3 times during the modification of mortgage, there still was no PP, as the underlying debt was discharged, he didn't sign a new app, note or any other agreement that trumps the Bk, so there was no PP on the 3 inquiries. Maybe they will shave $10-20k off the principal to make it at market value.

[mysticspirit25]

Pardon me---what is PP?

permissible purpose (a creditor cannot pull a credit report on a discharged debt as there is no valid PP and therefore a violation of the FCRA and they are liable to the consumer reporting agency AND the consumer (according to Kellie Cosgrove, FTC staff attorney))

[mysticspirit25]

Wow!. So, does this mean after a mortgage is discharged, even if you stay and pay, that the mortagee cannot send statements or bill you? I was discharged in 12/09 and was sent statements with a balance owed until sept of 10", then they started sending the voluntary payment statements. Very intetested to hear more.

Yes, the mortgage company cannot send statements that are actual bills. Any statement after the filing of a BK must contain the "bankruptcy language" which is something like "this is for informational purposes only, should you wish to voluntarily pay your mortgage," or something very similar, after discharge, if the statement does not contain this, it is a violation of the discharge order. My other friend and his wife who just got a discharge in Jan 2011, had Litton Loan which was transferred to Greentree, discharged it all, and Greentree started calling cell phones with an autodialer, artificial voices, and sending threatening letters, they filed an AP, and Greentree paid them $12,000 before the contempt hearing, no confidentiality agreement, they also modified the "mortgage to a fixed 2%". And they can still walk away should they wish in the future.

[mysticspirit25]

That's great news!! Do you happen to know who the insurer of the 2nd mortgage was?

Yes, it was United Guaranty Residential Insurance Company of North Carolina.

[tobee43]

very cool.........wish more atty's would go after these creditors......it's easy money for creditor and the atty!!! kudo's to your friend!