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Sold out Junior Lender is suing me!

Discussion in 'Debt Settlement' started by mikech, Nov 27, 2011.

  1. mikech

    mikech LoanSafe Member

    I was just served (Sunday morning surprise) with papers that my sold out junior lender (Bosco Credit) is suing for 70k + interest + attorney fees. They send me one letter before, but I ignored it after reading this site. I refied and got no cash, just a lower rate -- which seems to have cut my throat vis-a-vis purchase money.

    BOFA foreclosed on me after the 2nd lender spent 2.5 years blocking the short sale. I really have no cash to settle, bad credit and no family that will lend me money so I believe that I cannot negotiate a settlement (I am barely scrapping by and wife is unemployed).

    I wonder if I should take my chances in court. My 2nd in not original 2nd. They went under and the new people got the loan. So, I wonder if the court is going to ruin my life to give this bottom feeder company astronomical profit (on 70k they paid $700-$1,500 from the typical way these things go). It seems unconscionable to give them that when they spent 2.5 negotiating in bad faith and the fact that I paid them for years and they surely already profitted (and have thus suffered no real loss or harm).

    It also seems like I can go bankrupt if they win and have the judgement erased. Any ideas or advice? I will see a lawyer next week for sure, something I cannot afford at all.
  2. Cat Damiano

    Cat Damiano Mortgage Wars

  3. calgirl67

    calgirl67 LoanSafe Member

    Time for BK Chapter 7 it seems.

    Start afresh. It's not so bad... I've been through it 19 mths ago and our credit is better than it has been in about 6 years. Oh. and we got to tell Wells Fargo where to stick any lawsuits.
  4. mikech

    mikech LoanSafe Member

    Do you mean someone filed suit against you CalGirl? What did you do to end it?
  5. calgirl67

    calgirl67 LoanSafe Member

    Bank of America sued us for not paying our credit card debt (couldn't - we were buried in adjusted mortgage payments). They sued right when WF denied our loan mod app for the 2nd time, and the 2nd mortgage (also WF) charged it off and were probably getting ready to sell it off to a bottom feeder collection agency, like in your case.

    We filed CH 7 and it all went away.... peace and quiet and no more calls, threats and lawsuits. Suit from B of A was dismissed bythe court upon filing B. Filed in Feb 2010 and got our discharge in May 2010.

    One of my best moments was the day we filed, our attorney gave us our case number and I went home and called every single creditor and advised them we had filed BK, here is our case number and any further collection attempts would be a violation of Federal Bankruptcy law.

    Life has been good since. God bless America.
    Last edited: Nov 27, 2011
  6. igotpar

    igotpar LoanSafe Member

    mikech,

    sorry to hear about your situation. were you ever given an opportunity to settle from your SOJL prior to getting served? what state are you in?
  7. mikech

    mikech LoanSafe Member

    I am in California. So, my 1st, BOFA was still negotiating the short sale for 1.5 months AFTER they had foreclosed. I only found out that they had done a trustee sale after the person who bought the house at trustee sale put it back on the market. Then, the SOJL sent me a collection letter saying that I had to pay the full amount. Now, I have to get an answer. Should I contact this lawyer that is suing me? They must want me to pay them a settlement because I am an excellent bankruptcy candidate and they will end up with 0 for sure it seems if they sue me.
  8. TomEason

    TomEason LoanSafe Guide Staff Member

    mikech

    Thanks for your post.

    If you haven't been sued, then I recommend you ignore the plaintiff and the collection agency. SOJLs rarely sue, even when the loan was recourse and they aren't legally barred from doing so.
  9. HopingtoFind

    HopingtoFind LoanSafe Member

    Tom, I believe he is being sued.
  10. TomEason

    TomEason LoanSafe Guide Staff Member

    HopingtoFind

    Thanks for your post; I disagree with you. In re-reading mikech's post, it appears that the lender is threatening a lawsuit (so what's new), but haven't filed and mikech hasn't been served.

    And they most likely won't sue.
  11. HopingtoFind

    HopingtoFind LoanSafe Member

    The following statement from his first post made me think that they filed and he has been served:

    I was just served (Sunday morning surprise) with papers that my sold out junior lender (Bosco Credit) is suing for 70k + interest + attorney fees.

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