NAN101

How were they included in your chapt 7 if they aren't yours? Are they marked as discharged? I'm confused .... you're telling Transunion these aren't yours and belong to someone with a similar name, but you're also saying these were included in your BK?

Thanks for the reply, tmcgill. Do you have a reference for this ? I've been looking all morning. While I agree they (most likely) have the lien rights with the sale/transfer, isn't their only recourse to initiate foreclosure against the property to enforce their lien rights? If the debt was discharged in bankruptcy, how can they access my credit report since their intest/claim is against the property and not me personally? I might be more understanding if it was a soft inquiry to verify address, etc., but I would think they don't meet the requirements of permissible purpose for the hard inquiry here?

Hi all, it's been a while since I've been on this side of credit boards (was over on BK forum for a bit). I've slowly been rebuilding after BK discharged a year ago. Just a short background to my current question -- I incuded my mortgage in my BK. I was able to modify my first immediately after discharge and have been current since. My second mortgage hasn't been paid in a few years. Initially after filing BK I received a 1099C debt forgivesness for the 2nd. I do understand the difference between the actual debt and the lien. Veripro (who had the 2nd ) recently sent me a notice the servicing rights were sold to NLC Inc. From what I've been able to find, they are related to Stonecrest Financial. On Friday, I receive alerts on all 3 of my credit reports that a hard inquiry was placed on all 3 -- Stonecrest Financial (on TU) and Credit Bureau of San Mar (Eq and Exp, which I'm finding is an arm of Stonecrest). My issues/questions -- Is the inquiry considered first contact in that they need to send something within ? 5 days. I don't believe they had permissible purpose to access my credit report since the debt was discharged and I don't technically owe them any money (I know the actual lien is still there though). My intention was/is to at some point attempt settlement of the 2nd to have it released. I originally filed chapt 13 with the intent to strip the 2nd. Unfortunately, 3 years into my chapt 13 around the time of Hurrican Sandy things went awfully wrong and I had to convert to chapt 7 so lost the lien strip. I'm wondering how to handle the inquiries and wondering if I can somehow use this to help in negotiations in settlement attempts. Has anyone had a similar situation or any have advice how to handle these new hard inquiries?

Considering there will be no lapse in insurance, I would question any potential liability for the OP. Again, it's just that simple. There will be coverage. If some yahoo trips, they are going to file a claim with the insurance company. It doesn't matter who purchased the insurance. The bank will not let the property go without insurance for the exact reason of some yahoo tripping so, while I understand your point, I would disagree that they are two different things. The issue with forced placed insurance is that the coverage will only provide for and cover the banks interest. If the house burns down or has significant damage to it, they will be covered. It isn't going to pay for an injury, etc to someone on the property. My BK attorney was very clear about that once the discharge takes place and until the foreclosure is complete. The forced place insurance is only collateral insurance and nothing else. Since the home is still in your name prior to foreclosure, the homeowner is responsible for any injury or claim for an individual against the property.

The taxes are attached to the house so those will still continue to accrue. The bank most likely though will continue to pay the taxes even if you BK the mortgage. They are not going to want a tax lien attached to the property. As for the insurance, since the house will still be in your name until it forecloses, you are responsible if anyone gets hurt on the property, so the insurance is for your protection. If you had an attorney with your BK, they should have sent you a notice of what you need to do or are responsible for after discharge as far as the house goes.

Your best bet is have him consult a BK attorney ASAP. While filing chapt 13 would stop the foreclosure for the moment, I don't know how it would affect the in-process underwriting review that is going on. Does he have the income to support a Chapt 13 (in theory he'd need to show income to pay the arrears over a 3-5 year period plus the current mortgage payment monthly). There seems to be a lot of equity so I don't know how that will play in. With such a short time left, it probably is worth it to at least speak with a BK attorney and explain what his intention is and see what they suggest? Obviously, time is not on his side, so I'd do this sooner than later. Good luck!

Are you applying in the store or on-line? I would try on-line.

Sorry to hear what's going on currently, jmw1212. Kuuner is spot on here though. I remember your situation originally. I was in my chapt 13 BK at the time to save my home. Unfortunately, things went south after Hurricane Sandy and my husband had a lifechanging accident that pretty much ended his ability to do the work he's done all his life. The key here is going to be income obviously. We had to convert to chapt 7 to discharge all the unsecured debt at least. We then used that time to apply for a modification. It's just a business decision for the banks. Unfortunately, things are going to happen in our lives that are catastrophic for us, but the bank is looking only at the numbers in the end. I did take on additional employment and am working 3 jobs. We were 21 payments behind at that point. Luckily, with the increased income, the numbers fit and worked and they agreed to modify. It took all of 3 weeks for approval (nothing like the fiascos a few years back). I also have a special needs child and although things are tight and even downright frustrating at times, it is the situation that keeps you fighting to hang on. While you may feel devastation and defeated at the moment, you're not completely sunk yet. You're only the few payments behind. The key here is going to be income. You need to quickly find yourself full-time work . I assume your husband is and has been looking ALSO knowing his work will end in November? Will he at least get unemployment? Look around and see what you can sell. Your focus at this time along with your child's health issues will be getting income into the house and quickly. Do whatever it takes. Whether you keep the house or need to rent, you'll need this income either way. Make the decision on how you want all this to turn out (keep the house or walk away) and then put into action what needs to be done to pull it off. Good luck and keep us posted!

No, the question didn't pertain to dual tracking, but submitting the completed loan mod app would help in preventing them from filing a relief from stay to commence or begin foreclosure proceedings. As far as I know, in a no asset chapter 7 BK, trustee approval is not required (although I suppose it may depend on the district) to apply for mod and a lot of people actually attempt to use that few month window to obtain a mod to deal with arrearage. In a chapter 13 where mortgage is included in the plan would need trustee approval, however.

Under the new rules, they are not supposed to dual track. If you have a full, complete loan mod application in, foreclosure proceedings should be stopped. As far as Chapt 7 stalling the process, it could be the entire length until discharge or they can file immediately for relief of stay to proceed. Your best bet is get the mod app in and that should buy you time. Call and followup every week with them.

This still works as of today.

I, too, received a call from this # a couple of months back. It was for a very old debt that no longer reports and if it did, was discharged in BK anyway. I told him I had no idea what he was talking about, but to send the information via mail and I'd look at it and get back to them. Don't hold your breath for the 5 day letter, becacuse mine never came. I think they use the NJ what looks like a cellphone number (I'm in NJ too) because they figure you'll see it's a cellphone and you'll pick it up out of curiousity. My guess is, they are attempting to collect very old debts and just playing a game of who they can get to give them some kind of payment at that moment. That was my experience anyway. I never heard from them again.

How much is the 2nd mortgage? What state do you live in? The second can foreclose, but they'd need to pay the 1st off in the process so doesn't seem like it makes sense for them based on the numbers you've provided.

Do you still own the home or have they foreclosed? I don't know about the SOL for collecting, but I suppose they could have gotten a judgment. If you hadn't paid, the lien would still be on the property (that doesn't go away because of SOL for collection - 2 different things).

I'd try for a deed in lieu. You'll probably need a "hardship" etc., complete the package just as you would for modification. This way, although your credit will be trashed for a while, you'll eventually come back and depending on what state you're in, they'll be no deficiency. I'd move fast though before any foreclosure proceedings begin because then they'll start adding those fees on. If you wait on foreclosure it could be years from now and then years beyond that as they hound you for the deficiency if allowed. Alternatively, you could file BK and surrender the house. Your credit would take the hit for a while, but you could start rebuilding soon after discharge. You wouldn't have to worry about any deficiency and they'd probably at that point go ahead quicker with the DIL.