Any Surprise?? Fannie Mae enters the mortgage scam business, hires Strategic Recovery Group for bogu

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willingtoplay

LoanSafe Member
Apr 3, 2013
81
8
8
In PA also and probably will be in the same boat after they finally take the house. If I understand this correctly even if FM does not go for a deficiency judgement, they will try to recover the deficiency amount through Strategic Recovery or some other entity? Are the rights to collect the debt sold to this other entity, and if so are they the one who will attempt to seek a judgement based on what? When I read that in PA they only have six months to file for a deficiency judgement I was hopefully that i might be able to get through this without filing BK, but now not so sure.
 

Greener

LoanSafe Member
Jul 23, 2012
55
0
0
Bastards....!! The banks(and Fannie) made money off of the foreclosures, they get the house and then the greedy sociopathic frauds that they are start coming after for more from people who make an average income....They have no conscience...
 

eddward

LoanSafe Member
Dec 5, 2013
20
2
1
In PA also and probably will be in the same boat after they finally take the house. If I understand this correctly even if FM does not go for a deficiency judgement, they will try to recover the deficiency amount through Strategic Recovery or some other entity? Are the rights to collect the debt sold to this other entity, and if so are they the one who will attempt to seek a judgement based on what? When I read that in PA they only have six months to file for a deficiency judgement I was hopefully that i might be able to get through this without filing BK, but now not so sure.
Hi!
I'll try to figure out how to say this differently, especially since you are in Pa. as well. At this point Lender has gone to court to make the case that you are in default on your loan. At the end of any motions etc., the judge will most likely find for the lender and give them a default judgement and order a sheriffs sale. The amount of the default judgement will be for the balance of the loan when they first notiified you, plus interest through the anticipated date of the sheriffs sale, plus all legal fees and the cost of the sheriffs sale. The bank will be at the sale to make sure that the home does not fall into the hands of a third party for less than they are owed. (in my case, no-one else showed up so the bought my home for I think $800). That's the end of that. They have posession and ownership of the home.

Now, in Pa. the lender (or anyone they sell the note to, in our case Fannie Mae), has 6 months to try to recover any defficiency. The only legal way to do this in Pa is to go before the court a second time, (with all new notices to you) and seek the amount they feel is due them. At this point they need to establish the value of the home, and apply that to the amount owed, then add fees etc. If you get a notice from them (think since it is a court action, it has to be served by the sheriff or constable) (So it's not something you could easily miss). You should grab an attorney quickly to watch over your rights. I HAVE BEEN TOLD BY 3 SEPARATE ATTORNEYS THAT THIS ALMOST NEVER HAPPENS (there are also comments on this board agreeing with this) ,,, ONE SAID HE HASN'T SEEN IT IN 28 YEARS OF DOING REAL ESTATE WORK.

To state all this another way,,, the default judgement only says the total you owe them at the time of the sheriffs sale, it does not include the value of the home. Overall you do not owe them the amount of the judgement, you owe them the amount of the judgement less the value of the home.

If Fannie Mae, or Strategic Recovery Group try to circumvent this proceedure, they would be fraudulently colecting a debt, and they will get nailed. You're the 4th or 5th to post, there are probably a few hundred others just in Pa. Some hungry lawyer is going to pick this up.

Blessings,
 

eddward

LoanSafe Member
Dec 5, 2013
20
2
1
jeeez, just read through 5 or 6 other threads (there's a few dozen threads overall) under strategic recovery group, and found a half dozen other people who had paid rather than research, and dozens who were presently being scared to death by these guys,,,, Hurry up Mr. class action suit lawyer
 

Jeffrey L. Shurtliff

LoanSafe Member
Dec 4, 2010
3,823
139
63
There is not going to be a class action. These loans are sold to Stategic by Fannie; as fannie knows the person foreclosed on has no money and to collect is probably not affordable to fannie. So, fannie sells the debt to a collector for pennies on the dollar and the junk debt buyer goes after the person. The American way. Most do not have money to hire an attorney, so they settle. They do not realize, that first the debt collector must have a license within the state it collects and if it does not it is in violation of the Fair debt and collections act. It is a sad deal what these crooks are allowed to do, but they are only allowed to do what they do as nobody challenges it.
 

pellenga

LoanSafe Member
Oct 30, 2013
16
0
1
Michigan
There is not going to be a class action. These loans are sold to Stategic by Fannie; as fannie knows the person foreclosed on has no money and to collect is probably not affordable to fannie. So, fannie sells the debt to a collector for pennies on the dollar and the junk debt buyer goes after the person. The American way. Most do not have money to hire an attorney, so they settle. They do not realize, that first the debt collector must have a license within the state it collects and if it does not it is in violation of the Fair debt and collections act. It is a sad deal what these crooks are allowed to do, but they are only allowed to do what they do as nobody challenges it.
How can this be? In my case the sheriff sale occurred in November 2013 and sold for a full credit bid of $135k. The loan balance was only $117k. I'm in Michigan which has the full credit bid rule. I shouldn't have a deficiency to pay, not to mention we are still in our 6 month redemption period. Now SRG is not only trying to collect $52k, which my lawyer agrees doesn't make sense but now they want to settle for $18k. Shouldn't they be waiting until the house is beyond the redemption period IF they even had something ligament to collect on?
 

willingtoplay

LoanSafe Member
Apr 3, 2013
81
8
8
Thanks for your reply. Is Strategic still pursuing you for the debt? Keep us posted please. I am still months away from foreclosure, actually should be scheduled for a conference soon. See how that goes. Don't want to keep the house at this point since I know that servicer has no intention of making a mod offer affordable. House 100K underwater according to a couple of real estate people I talked with.
 

Jeffrey L. Shurtliff

LoanSafe Member
Dec 4, 2010
3,823
139
63
How can this be? In my case the sheriff sale occurred in November 2013 and sold for a full credit bid of $135k. The loan balance was only $117k. I'm in Michigan which has the full credit bid rule. I shouldn't have a deficiency to pay, not to mention we are still in our 6 month redemption period. Now SRG is not only trying to collect $52k, which my lawyer agrees doesn't make sense but now they want to settle for $18k. Shouldn't they be waiting until the house is beyond the redemption period IF they even had something ligament to collect on?
When a default happens on any loan a collection can occur pursuant to the law. In your case they made money on the house technically, unless you had a second on it. The money made does give you credit is you have a second. If you had a second on the loan, then if is collectable. IF you did not have a second and loan was a first and property sold for more that what was owed on it then you own nothing. Be advised that even though you are in a redemption period under your state law and a foreclosure sale occurred; then any debt in default as a result would be collectable. Your lawyer should know this and send them a letter that you owe nothing, unless like I say you have a second. The problem is with most lawyers is they take a retainer and leave you hanging and sometime wait until the very last minute to do something, even though you wanted something different.
I had a lawyer hired to get me a mod. gave him a retainer $2000. He did not do anything and I promptly went back using the laws of my state of which I quoted and got my money back. Case in point you hired the lawyer make him work or fire him.
 

Jeffrey L. Shurtliff

LoanSafe Member
Dec 4, 2010
3,823
139
63
How can this be? In my case the sheriff sale occurred in November 2013 and sold for a full credit bid of $135k. The loan balance was only $117k. I'm in Michigan which has the full credit bid rule. I shouldn't have a deficiency to pay, not to mention we are still in our 6 month redemption period. Now SRG is not only trying to collect $52k, which my lawyer agrees doesn't make sense but now they want to settle for $18k. Shouldn't they be waiting until the house is beyond the redemption period IF they even had something ligament to collect on?
When a default happens on any loan a collection can occur pursuant to the law. In your case they made money on the house technically, unless you had a second on it. The money made does NOT give you credit if you have a second. If you had a second on the loan, then if is collectable. IF you did not have a second and loan was a first and property sold for more that what was owed on it then you own nothing. Be advised that even though you are in a redemption period under your state law and a foreclosure sale occurred; then any debt in default as a result would be collectable. Your lawyer should know this and send them a letter that you owe nothing, unless like I say you have a second. The problem is with most lawyers is they take a retainer and leave you hanging and sometime wait until the very last minute to do something, even though you wanted something different.
I had a lawyer hired to get me a mod. gave him a retainer $2000. He did not do anything and I promptly went back using the laws of my state of which I quoted and got my money back. Case in point you hired the lawyer make him work or fire him.
 

pellenga

LoanSafe Member
Oct 30, 2013
16
0
1
Michigan
When a default happens on any loan a collection can occur pursuant to the law. In your case they made money on the house technically, unless you had a second on it. The money made does NOT give you credit if you have a second. If you had a second on the loan, then if is collectable. IF you did not have a second and loan was a first and property sold for more that what was owed on it then you own nothing. Be advised that even though you are in a redemption period under your state law and a foreclosure sale occurred; then any debt in default as a result would be collectable. Your lawyer should know this and send them a letter that you owe nothing, unless like I say you have a second. The problem is with most lawyers is they take a retainer and leave you hanging and sometime wait until the very last minute to do something, even though you wanted something different.
I had a lawyer hired to get me a mod. gave him a retainer $2000. He did not do anything and I promptly went back using the laws of my state of which I quoted and got my money back. Case in point you hired the lawyer make him work or fire him.
We have a second that's $15k through BoA. I called BoA and we're working on a deal with them, so it doesn't appear to be part of this $52k. I guess this is all going to be a huge learning lesson, one way or another. I have free legal service through work. My lawyer did send them a letter, but so far they haven't responded to it.
 

OverandDone

LoanSafe Member
Sep 2, 2011
785
5
18
Pellenga: I also have a second with them and would like to settle it and get it over with. The house foreclosed a few years ago and its just hanging there. How are you working a deal with them? Did they offer you a settlement?
 

pellenga

LoanSafe Member
Oct 30, 2013
16
0
1
Michigan
Pellenga: I also have a second with them and would like to settle it and get it over with. The house foreclosed a few years ago and its just hanging there. How are you working a deal with them? Did they offer you a settlement?
No, they havn't yet. In fact we havn't heard a word from them in several months which I found odd. I called them and found out that we have a desinated case manager. No one else will talk to us, they redirect us to her. She's always "busy" so I scheudled an appointment with her to talk to her at noon one day. As soon as she got on the phone she said she couldn't talk to me because my husbands name was the only name on the loan. I explained to her that not only are we married but I was added as a authorized person on the loan several months ago. She wouldn't have anything to do with me.

My husband works a crazy amount of hours so I'm waiting on him at the moment to call in with me. I have the experience in negotiation much more than he does. We both really want them to work with "me" on the deal. But here's my plan, once we talk to her we're going to ask her the status of the loan. I'll explain to her that we're thinking of bankruptcy and are trying to find out if our creditors such as BoA will work with us by negoting this debt or if we should just file. They would be better off negotiating. We'll see what happens from there.

I'll let you know what evolves.
 

pellenga

LoanSafe Member
Oct 30, 2013
16
0
1
Michigan
There is not going to be a class action. These loans are sold to Stategic by Fannie; as fannie knows the person foreclosed on has no money and to collect is probably not affordable to fannie. So, fannie sells the debt to a collector for pennies on the dollar and the junk debt buyer goes after the person. The American way. Most do not have money to hire an attorney, so they settle. They do not realize, that first the debt collector must have a license within the state it collects and if it does not it is in violation of the Fair debt and collections act. It is a sad deal what these crooks are allowed to do, but they are only allowed to do what they do as nobody challenges it.

I can't say I completly agree with this. Yes it's true that people got in these situations because they had a lack of money. However, these are some people that played their cards right in this whole mortgage game. Once a person lets their home go, and is done fighting the nasty battle, they are typcially in a better financial position then they were before the foreclosure. I think a class action suit is still a possibility that's on the table for the right person.
 

eddward

LoanSafe Member
Dec 5, 2013
20
2
1
Update on Fannie gate II, after almost 18 months. Remember I am in Pa., Default judgement gives lender right to take the house to at least partially satisfy the amount of the loan. If total is not satisfied they have the right to GO BACK TO COURT AGAIN in a separate matter and ask the judge to give them extra money. It involves serving you/me again, and also gives the opportunity for those few who actually owed less than the home is worth to state their case. THIS IS A DEFICIENCY JUDGEMENT if awarded. Months have gone by without hearing anything else from them, and I start to look for and get turned down for another loan(s). I get a copy of my credit report and find that in Feb. this year Strategic Recovery Group, also Vantium Capital, now Clearsprings posted a collection on my report. I decide to call the guy on the authorization letter from Fannie Mae. He does some research and calls me back and confirms that they DO NOT have a judgement against me, so I ask how can they collect on something they don't have, he tells me the debt basically goes on (I forget how long, trying to remain civil with him). After telling him I was not satisfied and was going to pursue things elsewhere, he started asking if I had any kind of hardship, eventually he said he would call Clearsprings and get the issue removed from my credit report and issue a 1099c. I asked him if that meant I would have to pay taxes on a made up amount that I didn't even owe them, but nonetheless they were forgiving. He said he wasn't an accountant.

So, you heard it here first,,,, Fannie gate 1 wasn't enough for these guys

Yellow pages full of ads for lawyers, yet can't find one when you need it :-(
 

eddward

LoanSafe Member
Dec 5, 2013
20
2
1
Hmmm...I, too, have been getting letters from Strategic Recovery Group after a Fannie Mae Foreclosure. However, there is no mention of judgment of any kind in the letter; simply a deficiency. The first letter was a "generous" offer to settle for $7000 of our total $29,000 defiency. Today, I got one where the settlement is a not-so-generous $10,000. I can only assume the next one will be even less generous. If I had money, I would have been paying my mortgage and never would have had to foreclose...ugh.
Sorry, don't see how to PM you,,,, curious how things worked out, and/or if you have retained an attorney, ed
 

Jeffrey L. Shurtliff

LoanSafe Member
Dec 4, 2010
3,823
139
63
Update on Fannie gate II, after almost 18 months. Remember I am in Pa., Default judgement gives lender right to take the house to at least partially satisfy the amount of the loan. If total is not satisfied they have the right to GO BACK TO COURT AGAIN in a separate matter and ask the judge to give them extra money. It involves serving you/me again, and also gives the opportunity for those few who actually owed less than the home is worth to state their case. THIS IS A DEFICIENCY JUDGEMENT if awarded. Months have gone by without hearing anything else from them, and I start to look for and get turned down for another loan(s). I get a copy of my credit report and find that in Feb. this year Strategic Recovery Group, also Vantium Capital, now Clearsprings posted a collection on my report. I decide to call the guy on the authorization letter from Fannie Mae. He does some research and calls me back and confirms that they DO NOT have a judgement against me, so I ask how can they collect on something they don't have, he tells me the debt basically goes on (I forget how long, trying to remain civil with him). After telling him I was not satisfied and was going to pursue things elsewhere, he started asking if I had any kind of hardship, eventually he said he would call Clearsprings and get the issue removed from my credit report and issue a 1099c. I asked him if that meant I would have to pay taxes on a made up amount that I didn't even owe them, but nonetheless they were forgiving. He said he wasn't an accountant.

So, you heard it here first,,,, Fannie gate 1 wasn't enough for these guys

Yellow pages full of ads for lawyers, yet can't find one when you need it :-(
 

Jeffrey L. Shurtliff

LoanSafe Member
Dec 4, 2010
3,823
139
63
No lawyer available because the debt is owed. You have no defense. It is because of what you stated first in your post. Default. Push Fannie to give you a 2099C best and only way.
 

eddward

LoanSafe Member
Dec 5, 2013
20
2
1
Hi Jeffrey. I re-read the thread last nite before posting, including your responses to see if I had missed anything, or was misunderstanding anything. I think you are wrong on your conclusion because one block in your foundation is misplaced. In every state, a contract is a contract. However, how a contract is enforced varies from state to state. You are correct that the debt was owed, however, you are forgetting that the debt was secured by an asset. In this case, the asset was worth more than the debt, (although that is not usually the case). In Pa., the remedy allowed by statute when a person falls behind on payments involves a federal and state act 91 notice giving an opportunity to core the DEFAULT. Next comes a formal (including being served by the sheriff) judicial proceeding where the judge decides who is right. The judge issues a decision, usually in behalf of the lender, and this is called a DEFAULT JUDGEMENT. It has now been determined that the borrower is behind by a certain amount, and the lender now has legal right to sell the asset to offset the amount of the default. The default judgement does not establish a net amount or any amount owed to the lender, it only gives them the right to continue the process of settling their debt. They can now sell the asset to offset the debt. AFTER THE ASSET IS SOLD then a final accounting of who owes what can happen. There has been no determination by anyone prior to this point as to who owes whom what. At this point I do not owe them a debt as you suggest. At some future time, the lender , if they want to, can proceed back to court a second time for a DEFICIENCY judgement if they want to spend the time and money to do so. Again, in the case of Pa., they have 6 months to do so. If they do not do that, then no further contractual or legal obligation between the lender and borrower exists.

Regarding the 1099c, again, if no debt has been established by a court or other statutory authority, then there is no debt to forgive, therefore no tax to be paid.

And lastly, anytime a person has been damaged, they can ask the court to correct the situation, In Pa., no debt or paper has been generated until a DEFICIENCY judgement has been issued, so Fannie is trying to collect on something that does not exist, it's fraud, deceptive or a scam. Whatever label you put on it, it is wrong, and sooner or later it will come out.

Elsewhere on this board, someone stated that SRG is an aboveboard collection agency, if I get a minute, I will try to trace that back and comment on that as well, because they are not

Hope this fills the crack in your foundation, and helps you continue in the work you are doing to help other people
 
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kiera

LoanSafe Member
Apr 20, 2013
33
0
6
Sorry, don't see how to PM you,,,, curious how things worked out, and/or if you have retained an attorney, ed
Perfect timing, because I just got a letter from Clearspring (to whom our debt has apparently been sold again, because the last few letters came from them and NOT Strategic Recovery Group) the other day saying they are now instruct their collection attorney to come after us. I'm not sure what to do, as I cannot afford a lawyer. (I make $8 an hour, and my husband's pay just got cut nearly in half.)

The house was in Michigan...isn't that a state where they have 6 months to collect? 6 months from when?? The sheriff's sale took place well over a year ago.
 

eddward

LoanSafe Member
Dec 5, 2013
20
2
1
Here is a partial answer: http://www.forecloseddreams.com/michigan-foreclosure-procedures You will need to go back in your paperwork and find out which kind of mortgage you had. I am going to try to find the website that describes what happens after foreclosure, but I think Michigen is a recourse state, meaning that they can come after you, but must do so in a legally prescribed fashion. What Clearspring, SRG, Vantium, and Fannie Mae are doing should be "collection fraud" in Pa. Read my above post replying to Jeffrey explaining what I am pretty sure is the proper proceedure in recourse states. The only variable would be the time limit established by statute. I will try to find out what that is in Michigan for you.