Need advice on mortgage foreclosure (insurance, 2014, real estate, credit report)

[tinynot]

Fourteen years ago, my spouse and his mother signed an agreement of conveyances that she would deed him her interest in real estate property and he would gift her $250.00 dollars for the rest of her life. Well, he died a year later and I kept his agreement to her. Okay, I defaulted and she filed the agreement as a mortgage. Now, I am in a civil suit of foreclosure.
However, when she filed the "mortgage", she added land description to the original document which has land that my husband bought from another family member, and other descriptions that I have not figured out yet. My attorney seems oblivious to this altered document although he witnessed them sign the original agreement. Her suit requested that the land was to be sold at public auction.
Personally, I believe this to be a fraudulent document or forgery, if you will. My question is how do I bring this to the attention of an officer of the court because she is now trying to bargain with me to give up the title of the land to my children, so they (which possibly means her and her son)can use the land.
Am I just crazy, or can't I get something done about this fraudulent mortgage filed as a correct legal description?

[ShanetheMortgageMan]

Do you have a copy of the original mortgage document? If so, then I think you'd be able to go down to the county clerk's office and ask them to compare the original's legal description to the one that the foreclosure suit lists, and have it corrected. You need to really figure everything out though, as you need to address every inconsistency at once.

If you don't have a copy of the original mortgage document with legal description, then it's your word against her's, and you'd have to prove it was altered by getting forensic tests done on the ink, print, type, kerning, etc. I don't imagine that would be cheap, but probably worth doing if you can keep the land that your husband bought from another family member.

You'd think the attorney would step in since they know the truth, which from your information is that the document has been altered, and perhaps if you let him know you need the original for forensic testing he may remember it the way you say it's supposed to be.

[tinynot]

Thank you very much, an I will go to the clerck's office if my attorney keeps ignoring that important issue.

[Modification Specialist]

Originally Posted by ShanetheMortgageMan

Do you have a copy of the original mortgage document? If so, then I think you'd be able to go down to the county clerk's office and ask them to compare the original's legal description to the one that the foreclosure suit lists, and have it corrected. You need to really figure everything out though, as you need to address every inconsistency at once.

If you don't have a copy of the original mortgage document with legal description, then it's your word against her's, and you'd have to prove it was altered by getting forensic tests done on the ink, print, type, kerning, etc. I don't imagine that would be cheap, but probably worth doing if you can keep the land that your husband bought from another family member.

You'd think the attorney would step in since they know the truth, which from your information is that the document has been altered, and perhaps if you let him know you need the original for forensic testing he may remember it the way you say it's supposed to be.

Agree with Shane in the three paragraphs above.

I understand what is happening - you defaulted on your payments to her, she is trying to get what is hers, however she is over stepping her boundary's by claiming the land as her domain.

It is clear what your next step is, if you do not have the deed of sale for the land. You need talk to the family member who sold your husband to land.

Another thing you could do - going down to your local court house to see who owns the land, plus the home.

[panza45dv]

Here is my problem, in 2005 we put our Michigan home on the market for sale because we were moving to Colorado. We took out a 2nd. mortgage for moving relocating costs. We made the move and the house stayed on the market. We continued to make the 1st. and 2nd. mortgage while we were living in Colorado. After a year of making both payments and the house still not sold we couldn't
afford this, the house went to foreclosure shortly after that we received a final bill from the 1st. mortgage holder saying we owed 1 cent. So we new the property was sold and they were paid off.
In 2007 we found out that the second mortgage holder had charged off the account.
Six years later in August 2013 we get a letter from a mortgage servicing co. we have never heard of saying we owed them over 12,000 dollars and wanted us to make monthly 200.00 payments.
We did not make any payments to them. Shortly after we tried to get pre-qualified for a mortgage
when the credit report was pulled this mortgage company who was unknown to us appeared dropping our credit score below where we needed to be to get pre-qualified. Is this legal? even if the original 2nd. mortgage was written off in 2007 is there a statute of limitations this old acct. sat dormint for six years and this new mortgage co. has no collateral. What can I do?
Thanks Dennis from Colorado...

[Pfhtex]

Are the collection letters from a true servicing company or collection agency? What is the name of the company?

How did this go un-noticed for six years?

I'm thinking it's a collection agency in mortgage servicer's clothing. can you copy it, mark out your name and identifying info, and post it?

As far as the mortgage process goes, the foreclosure was redeemed, and perhaps written off, when the home sold. The original servicer wrote off the bad debt and sold it to another company for pennies on the dollar for them to attempt to collect.

The damage to your credit is rough, but I question the collector. Call the company you got the 2nd from, track the path of the note, and fight it's validity. Send them a letter asking them to Produce the Note. At the very least, you can settle for half or less than the balance they want, maybe way less. As far as continuing to report the debt on your credit, that's tough to determine. You can likely go VA/FHA/USDA, provided you settle the debt. I'd have to see the way it's reporting on your credit.

[jlcam37]

A foreclosure of the 1st wipes out all junior lien holders. They can still come after you but only for whatever the statute of limitations timeline is in your state. You may have to sue them with the SOL argument to get them to go away. Send all three major reporting bureaus a letter disputing the debt and see the date it was reported on and watch for the 7 years they can legally report that debt to the bureaus to expire. Check if they are licensed debt collectors with the dept of financial institutions in the state if not you can sue for violation of FDCPA if one year since contacting you has not expired.

[panza45dv]

It says on my credit report Resurgent out of Greenville SC phone num. and add. partial acct. num. and original creditor Springleaf formally American General Finance.
Date opened Jan.2005
first reported Oct.2013
date of status Oct.2013
Type Mortgage Terms 30 years Monthly payment 200.00
Credit limit or original amount 12,935 high balance 12,936 recent balance 12,936 as of jan.2014
Responsibility indivual
statusopen 8400.00 past due as of jan.2014 by jun.2017 this account is scheduled to go to a positive status.
It is my understanding that the statue of limitations in Michigan is six years based on the above
information did the statue of limitations expire also this Resurgent believe they have as collateral the home we are renting.in Colorado, what do you think?

[Modification Specialist]

Originally Posted by tinynot

Six years later in August 2013 we get a letter from a mortgage servicing co. we have never heard of saying we owed them over 12,000 dollars

My response would be - Show me the documents!!

Originally Posted by jlcam37

A foreclosure of the 1st wipes out all junior lien holders.

Better said: the 1st mortgage is in first lien holder’s position, they have control of the title after a foreclosure. They have the option to sell the property, after they paid (off) the junior liens. So that title is free and clear. This is the way it should be, but doesn’t happen all the time. The is the reason for title insurance to protect a new homeowner from previous liens re-staking their claim on the property.

Originally Posted by jlcam37

They can still come after you but only for whatever the statute of limitations timeline is in your state.

To clarify: generally mortgages are considered secured debt because it is collateralized on the property. With a a first mortgage starting the foreclosure process is typically 5 months for non-payment in Non-Judicial states. Michigan is a that allows Non-Judicial foreclosures, the statute of limitations Michigan to file for foreclosure against a property is up to 10 years.

For juror liens to come after you in civil court, they have to release themselves for the title. Even though is might show as a charge off on a credit report, I question if they still have a lien of the property? Secured liens are designed to be attached to a property until paid off. For them to come after you in civil court, again they have to release themselves from the title. Once that happens the debt becomes unsecured debt. Unsecured debt similar to revolving debt, You are correct the period of limitations is 6 years for Michigan.

Originally Posted by jlcam37

Send all three major reporting bureaus a letter disputing the debt and see the date it was reported on and watch for the 7 years they can legally report that debt to the bureaus to expire.

Yes the magic number is seven years, however if the collection is refiled, the collection can remain to your report for another 7 years (have personally witness this happening).

Originally Posted by panza45dv

Resurgent believe they have as collateral the home we are renting.in Colorado, what do you think?

The only way they could come after other properties is filing a judgement with the courts. Then paying the sheriff to knock on your door to remove items totaling the amount of the judgement to auction to satisfy the debt. I have seen this happening one time in the last 13 years. It is unrealitic is will happen due the small amount. Unsecured debt is sold all the time to collection agentcies, at pennys on the dollar. They may have a valid claim since they bought the debt. Your option could be to settle at a lower amount.


How can you settle unsecured debt to acheive to lowest settlement? It's understanding two parts of the equation.

1. Call them up and mention the strong possiblty of a Chapter7.
2. Then say a relative is concerned about your credit is willing to give you money to help pay the debt off.

You mentioning a Chapter 7 bankrutcy, the collection company relizes they can lose their claim. Saying a relative is helping you. The collection company cannot ask for personal income documents from your realitive.

I respect that you are concerned with your credit. I realize you are concerned with your future. By takening the right steps now (little steps first, bigger steps later). This will lead you to better future.



Good Luck...