Discharged debt 2/2011 from BOA, OCWEN is trying to collect and report on credit

[bk2011]

Hi,
We filed chapter 7 BK in 2/2011, our debt was discharged in 6/2011. Our case finally closed in 12/2013 because our trustee died and they had to assign the case to another trustee which took time to get him up to speed, pay our creditors and finally close our case.

We had several rental properties, the mortgages with BOA and all of them were discharged with our ch 7 bk. Now all of the sudden, several of the mortgages with BOA were sold I guess to Ocwen who is now sending us creditor letters with new account numbers and balances due for these discharged accounts.

I sent OCWEN documentation showing that these debts were included and discharged in 6/2011 and they sent us letters agreeing and apologizing for the collection letters.

However, today I found out that they are now reporting 1 of the mortgages as delinquent on my credit.

Other than calling OCWEN, and disputing the line of credit on my credit report, is there anything else I can do? This process takes so long to rectify, and there is no guarantee that OCWEN won't continue reporting on my credit.

Thanks in advance!
D

[justbroke]

I would first dispute and report this to Ocwen directly. If they don't correct this within a reasonable time, then you could re-open your case and seek sanctions for a violation of the discharge injunction.

BofA just accidentally reported my old discharged account as 120+ days late (in November 2013)! It too was discharged. I called them and they were very apologetic. I just sent them a FAX yesterday (BofA) and they told me to call back in 48 hours. We will see what happens.

As for you and I, this happens from time to time. Just stay vigilant, and don't take no for an answer. They should be able to immediately make corrections using eOscar.

[newhope2011]

I would first dispute and report this to Ocwen directly. If they don't correct this within a reasonable time, then you could re-open your case and seek sanctions for a violation of the discharge injunction.

BofA just accidentally reported my old discharged account as 120+ days late (in November 2013)! It too was discharged. I called them and they were very apologetic. I just sent them a FAX yesterday (BofA) and they told me to call back in 48 hours. We will see what happens.

As for you and I, this happens from time to time. Just stay vigilant, and don't take no for an answer. They should be able to immediately make corrections using eOscar.

Hello Justbroke,
Can you advise or expand on how to go about this with Ocwen. We too are having difficulty getting them to act on mailings regarding our BK discharge of the debt.

[justbroke]

Can you advise or expand on how to go about this with Ocwen. We too are having difficulty getting them to act on mailings regarding our BK discharge of the debt.

First, I would send a letter CMRR and serve it on Ocwen's "registered agent" as well as the President/CEO of Ocwen (by their proper name... e.g. Brian T. Moynihan, Chief Executive Officer, Bank of America... for BofA). In that "demand" letter you'd mention the violation of the injunction, that sanctions would be sought, and give them a time period to take corrective action. Include a copy of the discharge and any other orders regarding the issue. When the green card comes back, wait the time you gave them to respond (14 days, whatever), and then proceed to re-open the case for Sanctions for a violation of the injunction and/or the court order.

(You could also ask your prior attorney to do this. Using an attorney may get faster results. I don't really advocate re-opening your case yourself, pro se, for sanctions. You could do this pro se, but you would need to know all the procedures to re-open. For example, you do not need to pay the $260 re-open fee for a violation of the injunction, but the clerk may charge you because the way you word your motion to re-open.)

[newhope2011]

Thank you Justbroke! I will contact the attorney.

[justbroke]

I just read something, somewhere, that the failure to release the mortgage may not be a "per se" violation of the discharge injunction. I suppose that's because it's not an attempt to collect a debt. In some jurisdictions, the debtor is required, after discharge, to file a complaint to have the lien stripped. I don't think this is the case in New York, but just mentioning that the process may vary by District/Appellate District.