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As my readers (and anyone who knows me) know, I am a Short Sale Specialist.  I aggressively fight for the right of home owners to get them out of their unaffordable mortgages all the while with the intent of removing them from future liability.

Please read an email I sent to the Massachusetts Attorney General:

I have a question as to the state’s laws on allowing a lender to proceed with collection activity after issuing a 1099C to a consumer.  A 1099C by its very name says a debt was cancelled by the lender and the amount reported on a persons taxes.  How can it be legal for a mortgage lender to issue the 1099C and then proceed to start collection activity? Any dime the consumer pays back after appropriately filing the 1099C and paying taxes on the “gift of equity” or the “phantom income” invalidates that 1099C as the money at that point was wrongly reported and is actually an ongoing debt.

What is the Commonwealth’s stance on this?  What laws are in place to protect the consumer and prevent this double dipping?

If there are no laws in place at this point, it seems to be a big loophole in the law that allows a mortgage lender to “have his cake and eat it too”.

Thank you in advance for your prompt response.

Here is the response I received:

Dear. Mr. Files:

Thank you for contacting the Office of Attorney General Martha Coakley.  Your message has been forwarded to me for response.

The Massachusetts Consumer Protection Act, G.L. c. 93A, section 2, prohibits unfair and deceptive acts in commerce.  Were any creditor to take action to collect a debt that was previously written off, it is possible that such conduct might constitute a violation of said statute.

Such conduct also might possibly constitute a violation of 940 CMR 7.07(2), which says

It shall constitute a deceptive act or practice to engage in any of the following       practices:

(2) Any knowingly false or misleading representation in any communication as to the     character, extent or amount of the debt, or as to its status in any legal       proceeding, provided, however, that an incorrect or estimated bill submitted by a       gas or electric utility company regulated by M.G.L. c. 164, and the Department of       Public Utilities shall not be prohibited by 940 CMR 7.07;

I hope this information will be useful, and thank you again for contacting the Office of Attorney General Martha Coakley.

Sincerely,

Nicholas Downing
Constituent Services Coordinator
Public Inquiry & Assistance Center
Office of the Attorney General Martha Coakley

 

Please print this out and keep it for your records to have handy in case needed! Also, please forward this to any Massachusetts home owner who is currently OR has completed a short sale.

Bobbie Files, C.D.P.E.
Certified Distressed Property Expert
Your Bristol and Plymouth County Realtor
508-238-5000 x.296 Office
508-521-9480 Direct / SMS
888-570-9907 Toll Free Direct Fax
bobbiefiles@kw.com Email

Visit my website at www.BerkleyMass.com

Visit my YouTube Channel at https://www.youtube.com/user/bobbiefiles

Join My Facebook Communityhttp://www.facebook.com/bobbiefiles.realtor

Search for Berkley Ma Homes at: http://BerkleyHomes.BerkleyMass.com

Search for Taunton Ma Homes at:http://TauntonHomes.BerkleyMass.com

For those struggling to pay your mortgage payments please visit:http://shortsales.berkleymass.com

Certified Distressed Property Expert

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A day in a short sale call.........

A day in a short sale call to a lender-It started with polite introductions, me stating my name, him asking 3 times what my name is, me stating that I was a transvestite at birth so I was originally named Robert and am now Bobbie. It took him awhile to grasp that idea :).We are then proceeding happily thru the conversation and he asked for my phone number, which I gave him. He asked if it was a land line, and I said no, so he asked for permission to call me on the cell. I responded with, as long as it's after 2:00 am and naughty in nature I am okay. He said "so I'll take that as a yes". Okay.....We then proceeded deeper into the conversation - oh, did I forget to mention I am a screamer????? -well, I am a screamer. How does that matter you might be wondering...... well, as we were conversing away, someone (unbeknowst to me) decided to poke me in my ear, which resulted in a shockingly loud, prolonged scream, into this poor man's ear. After which I proceeded to laugh uncontrollably, I mean fits of laughter. This kind gentleman stayed on the line the whole time asking how I was, and if everything was okay.We did finish the call on a more level headed tone.  Some documents did not upload to his system, so I refaxed directly to him.  He then emailed management to get this loan assigned to a short sale negotiator immediately.  I wonder if that was because he had fun with today's conversation, OR he wants to rid the bank of me?!?!?Bobbie Files, C.D.P.E.Certified Distressed Property ExpertYour Bristol and Plymouth County Realtor508-238-5000 x.296 Office508-521-9480 Direct / SMS888-570-9907 Toll Free Direct Faxbobbiefiles@kw.com EmailVisit my website at www.BerkleyMass.comVisit my YouTube Channel at https://www.youtube.com/user/bobbiefilesJoin My Facebook Communityhttp://www.facebook.com/bobbiefiles.realtorSearch for Berkley Ma Homes at: http://BerkleyHomes.BerkleyMass.comSearch for Taunton Ma Homes at:http://TauntonHomes.BerkleyMass.comFor those struggling to pay your mortgage payments please visit:http://shortsales.berkleymass.com
Read more…

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