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JokeStyles

30 Day Debt Validation not an Option, Do I still do a DV with the CA?

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So I did not want to do a DV to the CA and go for the 1-2 punch because it was more important in my situation to let the statute of limitations run out which was 6 years in this case I believe. Maybe some more experienced people can confirm that the SOL runs out for a mortgage from DOFD to the state in which your property is in?

 

So my main question is since the 30 Day Debt Validation is way past due do I still send a DV to the CA or do I just dispute with the CRA's and hope for the best? Is the 1-2 punch only applicable when you force the CA to validate the debt within the first 30 days of when you receive correspondence or see the debt on your credit report? Also I am going to start by requesting old addresses are removed so I am not a target for identity theft, should I do this in writing ONLY so I have a paper trail or is it perfectly fine to just try and get that portion done on the phone first?

 

Last couple questions if the original lender is no longer a company how do they even go about validating the debt? Will that just get automatically removed or will everything stay if the CA that has the debt can validate both the original loan as well?

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No trolls in your thread. ;) LKH was pushing it back up to the top so people will see it and answer. JBWN was saying, absolutely send a DV and then dispute. The point of the 1-2 punch is to catch them verifying a debt they haven't proved is yours, or before they prove it's yours. However, the 1-2 punch is generally used for credit card debt which is harder to prove, because the authenticating paper is not usually transferred if the account has been charged off and sold.

 

Mortgages, maybe, but it is still the proper way to dispute. Is this a mortgage? If so, need more info. Was the house ever sold? Give us a little more history. :)

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Missed that JWB response was a yes.

 

It was indeed a mortgage for two properties in Michigan. Neither were foreclosed on because they became worth next to nothing in a very low income area so the mortgage lender wouldn't even take them back. Eventually the city took them back. The original lender went out of business or dissolved their mortgage business, transferred the loan to another lender then was sent on to a collection agency or two over the years with each mortgage going to different agencies at one point. How would the original lender that is no longer a company validate the debt? Where would you even send a validation to have that removed from your credit reports? I'm guessing you just dispute it with the bureaus. The CA's have since added another TL of their own to the reports. It has hit the 6 year mark where SOL in Michigan has run out since date of first delinquency and I am a California resident. Loans total over 100k between the two of them. Is it still best not to awaken a sleeping giant in this case?

Edited by JokeStyles

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If they're past the SOL, it doesn't matter about poking the hornet's nest. What can they do besides empty threats? Send the validation letter to the CA's. Dispute the OC with the CRA's. IF that doesn't work, they will be obsolete soon. It's worth a couple of letters though to try to get it off now.

 

Maybe someone else has additional ideas or insights. I just wanted to tell you that you were greeted by the best we have on CB, not trolls. Although we do get some good trolls now and then, and if nobody's paying attention, I've been known to let the members play with them before I shut them up for good. :D

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So I got a few things cleared up however still not understanding everything. If the lender is no longer a company how do they even go about validating the debt? If I don't send a validation letter to the lender and only send a verification to the CRA for the lender how does the CRA verify? And if the OC transferred the mortgage to another lender that is reporting on my credit who went out of business and then transferred the debt to a collection agency or JDB where does that leave me?

Edited by JokeStyles

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You don't send validation letters to original creditors, because validation letters are based on a law that regulates collection agencies -FDCPA. So send a validation letter to the CA. Only the CA.

 

Dispute with the CRA to preserve your legal right to dispute (FCRA), don't worry about how they do anything. Just dispute the collection account now and if it is removed, disputed the original mortgage account. Any kind of inconsistency will do.

 

All of this is based on the consumer protection laws: FDCPA, FCRA amd FACTA.

 

You are not doing the 1-2 punch per se, but you are still following that basic principle.

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Ok excellent explanation. Thank you. If I have 2 CAs to send validation letters to do you recommend sending a dispute to each CRA after the CAs have received my CMRRR with both accounts at the same time or is it a better strategy to do each one individually?

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I would do them individually, but some people do more than one at a time. I believe that can cause one of them to be ignored - just my personal experience.

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You don't send validation letters to original creditors, because validation letters are based on a law that regulates collection agencies -FDCPA. So send a validation letter to the CA. Only the CA.

 

Dispute with the CRA to preserve your legal right to dispute (FCRA), don't worry about how they do anything. Just dispute the collection account now and if it is removed, disputed the original mortgage account. Any kind of inconsistency will do.

 

All of this is based on the consumer protection laws: FDCPA, FCRA amd FACTA.

 

You are not doing the 1-2 punch per se, but you are still following that basic principle.

 

I have a similar situation with Credit One Bank and LVNV or JC Christensen except I am still within SOL... Thank you Breeze, I'm a lot clearer on how to proceed now.

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Be careful with debts that are still within SOL. You don't want to get yourself sued.

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Thank you Breeze,

 

An you are absolutely right so after more research I decided to proceed with WhyChats Re:SOL method because it is still within SOL and was verified by CRAs..I'll post an update when I hear back.

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http://www.legislature.mi.gov/(S(fppg5e1w302vzqpzf0w3wiu5))/mileg.aspx?page=getObject&objectName=mcl-600-5807

 

 

it's 10 year SOL on mortgages, not 6

 

4) The period of limitations is 10 years for actions founded upon covenants in deeds and mortgages of real estate.

 

But your in CA now

 

http://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?chapter=4.&part=2.&lawCode=CCP&title=2.

 

361. When a cause of action has arisen in another State, or in a foreign country, and by the laws thereof an action thereon cannot there be maintained against a person by reason of the lapse of time, an action thereon shall not be maintained against him in this State, except in favor of one who has been a citizen of this State, and who has held the cause of action from the time it accrued.

but this has been passe arouns so much they would have to prove they own the debt;
you should probably have this reviewed by a Calif lawyer, ( I'm not a lawyer )

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ICANHASMUNY, really nice find. Thanks for that as that could of been a huge save for me. I've always been a resident of the state of California and even signed original contracts in California with a company that was a lender in the state of Michigan so I'm not sure where exactly the statute of limitations applies now. I thought it was 6 years in the state of Michigan would be worst case scenario. I'll contact a lawyer in CA.

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http://www.legislature.mi.gov/(S(fppg5e1w302vzqpzf0w3wiu5))/mileg.aspx?page=getObject&objectName=mcl-600-5807

 

 

it's 10 year SOL on mortgages, not 6

 

4) The period of limitations is 10 years for actions founded upon covenants in deeds and mortgages of real estate.

 

But your in CA now

 

http://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?chapter=4.&part=2.&lawCode=CCP&title=2.

 

361. When a cause of action has arisen in another State, or in a foreign country, and by the laws thereof an action thereon cannot there be maintained against a person by reason of the lapse of time, an action thereon shall not be maintained against him in this State, except in favor of one who has been a citizen of this State, and who has held the cause of action from the time it accrued.

but this has been passe arouns so much they would have to prove they own the debt;
you should probably have this reviewed by a Calif lawyer, ( I'm not a lawyer )

 

California’s One Action Rule

According to California's one action rule, the lender can only pursue one form of action for the recovery of a debt or mortgage (Cal. Code Civ. Proc. § 726[a]). This means that a mortgage lender is only allowed to:

  • conduct a nonjudicial foreclosure (a trustee’s sale)
  • judicially foreclose, or
  • sue on the promissory note for the balance of the debt.

Security First Rule. The one action rule seemingly gives the lender the option to sue the borrower personally based on the promissory note and forego foreclosure. However, courts have interpreted the rule to mean that a lender must pursue the secured real estate first. This is known as the “security first rule”. This means the lender cannot sue on the promissory note as the first method of collection.

Have any idea how this would play out since they never tried to foreclose first and a CA just purchased the debt probably for a fraction of what was owed?

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I would hire a consumer lawyer. I'm not sure which states sol applies on real estate actions, and you have a JDB issue too. JDB's are further restrictef in california under the new law.

 

It is in the state law forum.

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http://www.legislature.mi.gov/(S(fppg5e1w302vzqpzf0w3wiu5))/mileg.aspx?page=getObject&objectName=mcl-600-5807

 

 

it's 10 year SOL on mortgages, not 6

 

4) The period of limitations is 10 years for actions founded upon covenants in deeds and mortgages of real estate.

 

But your in CA now

 

http://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?chapter=4.&part=2.&lawCode=CCP&title=2.

 

361. When a cause of action has arisen in another State, or in a foreign country, and by the laws thereof an action thereon cannot there be maintained against a person by reason of the lapse of time, an action thereon shall not be maintained against him in this State, except in favor of one who has been a citizen of this State, and who has held the cause of action from the time it accrued.

but this has been passe arouns so much they would have to prove they own the debt;
you should probably have this reviewed by a Calif lawyer, ( I'm not a lawyer )

 

A lawyer in Michigan just told me covenants don't apply to the promissory note that was signed to pay back the loan.

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To better explain they have 10 years to foreclose or put a lien against the property but only 6 years to sue on breach of contract.

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