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

[eddward]

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.

 

[eddward]

Here's another reference, it's from Trulia, which should be fairly accurate http://www.trulia.com/blog/shanethemortgageman/2011/12/foreclosure_laws_state_by_state Scroll down to Michigan, looks like they can proceed with chasing money, but will need to look further to establish how that is done, again, in Pa., the amount must first be decided by a court in a separate action after the amount of the sale of the asset, (your home) has been established

 

[kiera]

I had a Fannie Mae mortgage. After reading your link, I am wondering how I find out if my foreclosure was judicial or non-judicial? I have no idea. Thanks very much for the info- it is greatly appreciated.

 

[eddward]

Also, while reading that site, scroll down to Pa., you will see the procedure is clearer, and it is definitely 2 separate actions. Also suggest searching to find the difference between a judicial and non-judicial foreclosure

 

[kiera]

Thank you. Mine was non-judicial.

 

[eddward]

I am probably in over my head, but let me ask one more question, when you had the foreclosure last year did you get formal notices for a court hearing given to you certified mail or by a sheriff or constable?, or were you just served notice that your house was going to be sold at auction for non payment in the next 30-90 days? That would determine which kind of foreclosure you had.

Also, would suggest trying to find out which state agency covers collections in Michigan, here it is the attorney generals office, but don't know what the title would be out there. There might even be an online form where you could open a file if they are acting illegally.

 

[eddward]

Nuts,. sorry for the overlap, got a phone call. So the question gets narrowed down,which is important, since there are so many variables from state to state. In Michigan, does it require a separate action after the auction in a non-judicial foreclosure to determine any additional amounts owed on the original debt, and if so, is there a time limit for the creditor to obtain such a judgement. Would suggest calling some local foreclosure attorneys, or the state agency above, or possibly trying one of the online legal sites that answers questions for a small fee. Now you have an exact question (actually 2) to ask. Make sure the site has lawyers licensed in Michigan

 

[kiera]

Thanks so much for the replies. I was doing some checking up on this Clearspring company, and they are not accredited with the BBB and people have left numerous complaints with them. Not sure if that means anything, but it does make me suspicious.

 

[Jeffrey L. Shurtliff]

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.

SRG is an agent for Federal contractor statutory authority Fannie Mae.

 

[ZoeR1982]

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

 

[ZoeR1982]

Dear Edward,

I am also PA resident. I am waiting for foreclosure to be finalized. The servicer is WF, investor is Fannie Mae. I am curious how your case turned out. I have done a lot of research about deficiency judgments in PA and everyone says that it's extremely unlikely to get a deficiency after foreclosure on owner occupied residential property in Pennsylvania. I would greatly appreciate if you can provide an update on your case. Thank you in advance.