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2nd mortgage forgiven with 1099c then sold to collection.

Posted on: 31st Aug, 2010 07:24 pm
I have been fighting for over a year with a collection company who says they bought our note 12 months after the date of forgiveness.Forgiven 8/2008. 1099c's came Feb 2009. August 2009 new lender/collection claims purchase of debt August 2009. Now I know they are in the wrong.I have asked them to explain how this happened and all they will divulge is "it was in charge off when we purchased" I have written letters for help and explanation and get vague misleading answers.I send "proof of debt" request and get photo copied closing docs. as well as a transfer of debt letter from them dated 8/2009. After numerous letters and hundreds of calls I filed a claim with my state(NH) Banking Comm. They investigated and found the debt to be in violation of NH banking laws. A debt cannot be forgiven and charged off.Since we are holding 1099c's dated a year prior by another lender NH informed them they cannot legally collect upon this debt in NH. At which time the lender agreed to "cease all collection and remove lien" However they never ceased. Collection letters came in July and August. Then tonight they called me "even though I have a written request on file "do not call" I tell him this matter has been resolved and I ramble off all the dates of letters they sent and what they said in them "All collection will cease" and "we are in the process of removing the lien" He informs me that collection will continue and the lien removal was denied.

Now I know I have a lawsuit just for the sheer fact I hold the 1099c's and I have letters from the new lender saying they will comply but then do not. What type of lawyer would best handle a case like this?
Hi Steamo,

If the lender has forgiven the dues, then he cannot sell the account to a collection agency. The collection agency cannot harass you when you have all the required proof that the debt has been forgiven. You can contact a local real estate lawyer and he might help you in dealing with the collection agency and the lender.
Posted on: 31st Aug, 2010 09:27 pm
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