Home Loans and Support

Disputing Validity of the debt

Discussion in 'Stop Foreclosure and Tell Us Your Story' started by Kathyrip, Aug 14, 2010.

  1. Kathyrip

    Kathyrip LoanSafe Member

    We stopped paying our 2nd at the beginning of this year. After a couple of months they sent us a letter saying we needed to dispute the validity of the debt and if we didn't it would be assumed to be valid. So I typed up on one ligner that said something like "we dispute validity of this debt", signed it and faxed it off. Since then we have heard NOTHING from our mortgage company. It shoes the loan as being "paid off" on their website.

    Anybody have this happen after disputing the validity of a 2nd mortgage?
  2. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Yes after you dispute the debt it is very common for them not to make any contact with you.

    From the FTC:

    Can a debt collector keep contacting me if I don’t think I owe any money?

    If you send the debt collector a letter stating that you don’t owe any or all of the money, or asking for verification of the debt, that collector must stop contacting you. You have to send that letter within 30 days after you receive the validation notice. But a collector can begin contacting you again if it sends you written verification of the debt, like a copy of a bill for the amount you owe.
  3. whypay

    whypay LoanSafe Member

    Kathyrip-

    What's the latest with NavyFed? How long did it take before the 2nd was "charged off", and was the 2nd a HELOC, or a part of the original purchase loan? Were you dealing with thier LCR department once it went into "charge off" staus? How were they to work with? Any info you can provide would be beneficial to all of us dealing with this institution. Thank you.

    WP
  4. Social Apocalypse

    Social Apocalypse LoanSafe Member

    I find this VERY interesting indeed. I have often thought of using STATE law (as my attorney has already advised me many times) to find remedy with my mortgages.

    Consider: IF the NOTE is indeed invalid (and we all know that if MERS appears on the Deed of Trust IT IS INVALID, as the coming months of case law will continue to bear out). THEN The debt you owe, is IN FACT, unsecured debt, and subject to applicable laws by Fair Debt Collection Practices Act.

    What would be the result of sending your standard, run-of-the-mill debt validation letter on a debt that is NOT secured by your primary residence? Obviously, they could not prove the debt, because they would have to show the NOTE and actual transfers. The transfers would be the LAST thing you would receive in your "Debt Validation Request" because that is the VERY THING that MERS keeps under wraps, and YET, that is the VERY THING that they must provide to you, or CEASE to collect.

    What am I missing here? Hmmmm.....

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