Sold Out Junior Loan Bought by RCS Recovery

**rporemba** · 06-27-2012, 04:59 PM

I had a second mortgage that was originally with GMAC and after foreclosure it was sold to RCS Recovery Service in Florida and became a SOJL. They purchased it in Feb.2012 and have been calling me ever since and I have basically been ignoreing them off and on. Today they called my work, I was paged by the receptionist. How they found out where I work is beyond me. Anyways my original home was in Michigan I lost my job in 2008. Subsequently it took me until March 2010 to find this job in Wyoming. Over time I exhausted my saveing and could no longer pay rent here and house there so I lost it. I tried a short sale 3 times, but GMAC would never agree to it, so I lost it. Now with RCS Recovery owning it, what will there next move be? Should I send them a Cease and Disist letter? If they try to sue me, do I have to be served personally, or can they serve my wife who was not on the loan at anytime? Could it be done through Certified or Registered mail? What would my chances of being sued be? I have done a web search about this company and haven't found much at all. The only lawsuit were in there home state of Florida. Any advice would be greatly appreciated. Thank you for your time and patients.

**OverandDone** · 06-27-2012, 05:03 PM

Have they offered you any settlement amount? The general advice here is to ignore them but I think that is hard sometimes to do.

**Evan Bedard** · 06-27-2012, 05:05 PM

Is this property in Michigan or Wyoming?

**rporemba** · 06-27-2012, 05:37 PM

The property was in Michigan and I moved to Wyoming for a job. I offered them 5 percent but they want 25 percent, way to much. I am curious as to what I can expect from them next. I will drag it out as long as possible.

**rporemba** · 06-28-2012, 09:11 AM

Still waiting for someone to help with some helpful advice and answers to my questions. Please help. Thank you for your time.

**BustedBrokeBeaten** · 06-28-2012, 09:31 AM

Have you read the information on the Sold Out Junior Loans thread? You might try posting your story there. There is a wealth of information there. Click on the link below. ~ BBB

Sold Out Junior Loans

**bgriff** · 06-28-2012, 09:39 AM

How much is the SOJL ? If it's not that much, then the chances they'd sue are minimal. Personally, I'd wait it out - Plan "B" would be BK7 (if you qualify). I'd tell RCS they can have 5% now or nothing after BK and see where that goes. I'm not familiar with Michigan law so you might want to contact a BK lawyer. Word of caution with BK lawyers, they're going to try and sell you on BK - that's how they make money. The initial consult is usually free and you can get an idea of whether you'd even qualify for a 7 (I wouldn't do 13 unless your back is against the wall) and what your up against in Michigan. Good luck.

**BustedBrokeBeaten** · 06-28-2012, 10:05 AM

Just my opinion, but based on what I've learned from LS (Tom Eason), there is no reason at this time for the OP to pursue a conversation with this CA, and it's certainly too soon to even think about BK. I would send a C&D letter and ignore any calls from them and roll the dice that they won't sue. As Tom Eason advises we need to take a stance of strength, not weakness, and by initiating contact with this bottom feeder CA company, it shows the OP is anxious which is a sign of weakness. They will pounce and take advantage of the obvious anxiety. Every question asked by the OP starts with "if" so that is a sign of pure anxiety. The CA will **** the $$$ right out of us if they suspect we are anxious at all. Read and learn all the wealth of information on this website because knowledge is power and power is strength. Again, just my $.02 (FWIW ~ LOL). BBB

**rporemba** · 06-28-2012, 10:56 AM

The SOJL is 29,600 and they want 7800. I told them you can have 1500 now. Then hung up. I will be sending a C and D letter certified mail on Friday. Since. I now live in Wyoming wouldn't they come after me here. Thank you for your excellent advice.

**bgriff** · 06-28-2012, 12:50 PM

Your $.02 is certainly worth a lot more :-)

I agree BK is drastic. My suggestion was to just go and get an education about what would happen if they were to sue. The more informed one is, the easier it is to handle the CA or any other debt collector. Also, the easier it is mentally for one to handle the situation as the unknown is what causes people to lose sleep.

My guess, is as BBB, they won't sue. Some people want closure and peace of mind, so they pay a couple of bucks. Again, personally, I'd offer the 5% and tell them if they don't want that, then they can go **** it !

**rporemba** · 06-28-2012, 02:43 PM

Thanks for the advice, I don't plan on ever paying them a dime. Especially after the called my work. I am curious as to how they got my work number. I am sure they have devious ways of getting that information. Anyway the C and D letter goes out tomorrow. Will keep you informed. And any further advice is always appreciated.

**rporemba** · 07-15-2012, 04:36 AM

When your home is foreclosed, does the SOL start then or when you made the last payment? And if you move is the SOL stay with the property or the state you moved to? Thanks for your time and help.

**shobam** · 07-15-2012, 01:11 PM

Originally Posted by rporemba

When your home is foreclosed, does the SOL start then or when you made the last payment? And if you move is the SOL stay with the property or the state you moved to? Thanks for your time and help.

The SOL starts at the time of your last payment. I did a short sale that left me with a SOJL that was bounced from the OC to the outfit servicing the loan to a Ca and back and forth for nearly 2 years. I eventually settled, but I had a compelling reason to do so. As suggested above read the thread "Sold Out Juniors" and the thread Strategy for settling your second" all the answers to every question you have will be in either of those two threads.

The first thing that you should do is determine if the state that the SOJL was in was a recourse state or non recourse state and if the loan was purchase money or not. Read the fair debt collections laws both federal and the state that your in not the state that the house is/was in. Those three things will determine whether or not you even have to pay it back. Be careful in dealing with Collections outfits, collection arms of a bank. a recovery group of a bank and collections lawyers. You could get tricked into paying something that you otherwise they may not have a legal way to get. Secondly, carefully craft a cease and desist letter and sent it to that collections outfit. In the letter tell them that your are exercising you rights under federal debt collections act (FDCPA) that they (the collections outfit) stop calling you, your place of work, relatives, friends and associates regarding this debt or any debt that you think that I owe. Do not deny the debt nor acknowledge the debt, be vague about the debt itself but don't refuse to pay or suggest that you will. Be brief, forceful but professional and to the point. Write that it has become your policy to deal with "all' debt accounts via the USPS. Send it registered mail via the USPS. There are many example letter out there. In some states by acknowledging the debt you could start the SOL all over again, not likely but possible. Some time latter, much latter when they send you a collections letter demanding it all in full respond at your leisure with a low ball offer to settle. Send it registered mail. This will keep the collections outfit from saying that you have refused to pay. I know it flys in the face of what I said above about acknowledging the debt one has to feel these things out.

You need to first find out positively whether or not your house was in a recourse state and if the money was purchase money or not. Law suits from SOJL are all but unheard but you should learnthe BK laws in your state, and everything regarding suits of this kind. Time is on your side. Read more here and keep us posted.

**TomEason** · 07-15-2012, 06:15 PM

Originally Posted by rporemba

When your home is foreclosed, does the SOL start then or when you made the last payment? And if you move is the SOL stay with the property or the state you moved to? Thanks for your time and help.

rporemna

The SOL clock starts on the date the 1st FCs and the junior lender/lienor becomes a SOJL. The applicable SOL is the state where that property is located.

**rporemba** · 07-17-2012, 09:58 AM

Have an update, Rcs Recovery received my C&D letter and will no longer contact me. Said they have turned this over to attorney for legal collection efforts. Does this mean I am looking at a suit? Or is this another ploy? Michigan is a recourse state and has a 6 year SOL. What are your thoughts?

**rporemba** · 07-17-2012, 10:17 AM

Misread letter, actually it reads. "Refered to attorney for further collection efforts. " I am sure they haven't given up.

**shobam** · 07-17-2012, 10:46 AM

Originally Posted by rporemba

Misread letter, actually it reads. "Refered to attorney for further collection efforts. " I am sure they haven't given up.

I have a stack of them from the 4 years of back and forth with my short sale SOJL and all the bills my wife had after her operation. Yeah, they can be frightening but you know your financial situation. Ask your self this, if they do file a suit on ya how far out is it and what if anything could they get. I say call their bluff. Have you checked to see if your state is a recourse or non recourse?

**rporemba** · 10-26-2012, 10:44 PM

Well, just got served papers by sheriff about 2 hours ago. Am getting nervous now. I hadn't heard from RCS Recovery Services since I sent cease communications letter, now this. But I do plan to fight these bottom feeders. I am already writing a "Sworn Denial of Debt" and filing with court. And sending a copy to their attorney. And take it from there. Anyone have any suggestions or advice, any of which would be greatly appreciated. Thank you all. Rick

**rporemba** · 10-28-2012, 05:15 PM

My SOJL was bought by RCS Recovery Service in February. Tried negotiating, but no good. Anyways, have been taking the advice from another thread and have ignored them. In June they actually called my work. So I sent a "C&D"letter. Haven't heard a word since, until Friday night when I was served papers by sheriff. Have prepared a "Sworn Denial "letter as a response, as I plan on going to court. My question is, should I contact their attorney first to negotiate? Would it do any good? I also noticed something on the copies of loan paperwork. It has a stamp on it reads no-recourse. Does this mean anything. I plan on representing myself, so any advice would be of great help and greatly appreciated. Thank you for your time and help. Rick

**Evan Bedard** · 10-29-2012, 09:22 AM

Have prepared a "Sworn Denial "letter as a response, as I plan on going to court. My question is, should I contact their attorney first to negotiate? Would it do any good? I also noticed something on the copies of loan paperwork. It has a stamp on it reads no-recourse. Does this mean anything. I plan on representing myself, so any advice would be of great help and greatly appreciated. Thank you for your time and help. Rick

Hello Rick,

I'm sorry I am not a lawyer and unfortunately it does sound like they may be pursuing a suit against you. Which document are you referring to that has this "no-recourse" stamp on it? I would recommend consulting with a local real estate attorney to go over your situation and you can find legitimate ones in your area using the following link.

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