Ditech / Greentree / Hsbc 2nd Nightmare

#1
I had some new activity I'm a little concerned about. I got a letter from a Gurstel law firm saying they were retained by greentree (odd since it's been ditech for well over a year). it says "at this time no attorney with this law firm has personally reviewed the particular circumstances of your account." Anyone else ever get one of these?

I just passed five years since my last payment, but my state's SOL is 10 years for written contract. Should I be freaking out? Seems like a very generic "scare you" letter. If they represent Greentree/Ditech, is my SAD letter applicable to them? or do I need to send them one?

I was doing some reading and the SOL on Promissory Notes is 5 years here. Isn't the PN the "I agree to pay" part of the equation? If so, does that mean I'm past the SOL?

The real kicker of all this is I had THOUGHT I had reached a settlement back when HSBC had it, for around $4500. I have nothing from that, though. No receipt, no letter, nothing. So, I may have well just burned that $4500 I guess.
 
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Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
#2
I could not find any other members who have mentioned the Gurstel law firm. A quick Google search shows they are a real law firm and they do work for creditors.

What is a SAD letter? I assume you mean a cease and desist letter and if so, you would need to send a new cease and desist letter to this law firm.

You had already settled this for $4500 but that was never recognized or paid as settled by HSBC?
 
#3
Correct. I looked them up, too. Can they sue without foreclosure? I'm still under water on the 2nd. Yes, I don't have any receipt or anything, paid HSBC, but never went away and did not change principal. I have given up on that after 5 or 6 years gone by... how does the SOL work regarding promissory note versus contract?
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
#4
Under contract law, a verbal agreement is a legally binding contract. But you would have to sue them to prove that and that would probably cost $30k to do so.

No, they cannot sue without foreclosure unless they charge off the loan which would make it a personal debt. They can then sue you personally without foreclosing to get a judgment.

The SOL goes from the last date of payment.
 
#5
I am preparing a cease and desist letter and wondered about a couple of things. I wondered about adding info about settlement offer and about the fact that my house in a sad state of disrepair and has never been updated. There are some structural issues that need addressed, but could that cause me problems in some way? If they are considering my property more valuable based on homes by me, they have all been extensively updated and sold for barely enough to cover my first and second, but mine would barely cover the first if sold. Should I include some of that information or should I send that in a separate letter? Thank you!
 
#6
also, I'm finding a lot of conflicting information online regard the SOL. I have found things that say the "written contract" portion of the mortgage is the promissory note and that only has a 5 year SOL, which I'm past. I'm in Iowa, if that helps...
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
#7
I am preparing a cease and desist letter and wondered about a couple of things. I wondered about adding info about settlement offer and about the fact that my house in a sad state of disrepair and has never been updated. There are some structural issues that need addressed, but could that cause me problems in some way? If they are considering my property more valuable based on homes by me, they have all been extensively updated and sold for barely enough to cover my first and second, but mine would barely cover the first if sold. Should I include some of that information or should I send that in a separate letter? Thank you!
I would write them separately.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
#8
also, I'm finding a lot of conflicting information online regard the SOL. I have found things that say the "written contract" portion of the mortgage is the promissory note and that only has a 5 year SOL, which I'm past. I'm in Iowa, if that helps...
Iowa is 10 years for a written contract and 5 years for an oral contract. see this link http://www.nolo.com/legal-encyclopedia/statute-of-limitations-state-laws-chart-29941.html

In May 2015, the Iowa Court of Appeals issued a decision in U.S. Bank, N.A. as Trustee in Trust for SASCO 2006-BC3 Trust Fund v. Jereme Lamb, holding that a mortgagee does not lose its mortgage by taking a judgment; the mortgage remains a lien that can be foreclosed until the debt is paid. see this link @ https://www.dickinsonlaw.com/blogs-...615-11-bar-lender-pursuing-foreclosure-decree
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
#10
You are welcome. Sure, my email is moe at loansafe.org.
 
#11
I sent those a week or so ago, not sure if you got them or not. I hit that "30 day" mark and don't want the calls to start, so wanted to send... was looking forward to your input. thanks.
 
#13
thank you so much for all your help, Moe! now some waiting, some more anxiety and then dealing with the vultures... and lots of praying. :)
Try not to worry too much, no need to pray. Take it as they come. You only hurt yourself if you do. I had an HELOC with HSBC originated in 2006. After I stopped paying due to hardship. HSBC sold the loan to GreenTree in 2014. GreenTree (Ditech) tried to collect, I wrote them DV letter asking for prove. They sent a copy of my note with an forged alonge, I challenged the alonge. They went away. They still send me monthly statement with the notice "We can not take legal action due the SOL has expired..." A lady called me asking me what my intention was. I told her my intention is to do nothing, if they want they can sue me. They hanged up. Do not let them bully you around. A bunch of junk -debt buyers trying to get rich on uninformed debtors. Good luck to you.
 
#14
weird, almost a month after sending letter, I just noticed this has been removed from equifax, but listed on trans. it's has had various states of closed, in-collection, written-off, etc. It wasn't on any reports for a few years, then appeared after ditech (then greentree) acquired it.

does this mean something? should I be prepared to be sued or something else? Sure seems like a lot of hassle for a multi-billion dollar company to put into less than 30k.

thanks!
 
#15
After nothing for almost two years, yesterday I received a letter from the law firm saying I could cure the default by paying around $2k and if I default again in 12 months, they may foreclose... obviously NOT a settlement offer. I'm gaining some equity, but we were in a bad flood over the summer and the work is still in progress, so the house is a bit of a disaster. Should I ignore? Respond with another request for settlement? Anyone else get one of these odd offers to cure a 8 year old default?
 

moretrouble

LoanSafe Member
#16
After nothing for almost two years, yesterday I received a letter from the law firm saying I could cure the default by paying around $2k and if I default again in 12 months, they may foreclose... obviously NOT a settlement offer. I'm gaining some equity, but we were in a bad flood over the summer and the work is still in progress, so the house is a bit of a disaster. Should I ignore? Respond with another request for settlement? Anyone else get one of these odd offers to cure a 8 year old default?
I would not pay. It's a violation of Unfair Trade Practice Act to collect on a loan after 6 years. Ditech tries to suck me a settlement from time to time. I always told them "go ahead and sue" they always went away. Read your state statutes on Unfair trade practice, and unfair debt practice. They may try to forge your note by adding an allonge. But if they are only asking for 2K, they are not to spend 5K minnimum to foreclose. The act of threatening to foreclose without th right to do so is also a violation of state law. Look it up.
 
#17
They never used the word "foreclose" to be safe ... they say "take legal action."

I am replying that I want a settlement offer... Our house got nailed with a flood last summer and the work is still in progress, so the value has tanked quite a bit.