Yes often the FDCPA applies to your mortgage company. Here’s a recent question: “I read that the FDCPA, the Fair Debt Collection Practices Act, does not apply to a mortgage company. Is that true?” It depends. Your mortgage company must be a debt collector for the FDCPA to apply and give you protection. Let’s walk through an example to illustrate this point — if the mortgage company gets the loan and it is not in default, then not a debt… (Read more)
General rule on loan modifications when transferred Normally once a loan has been modified then even if the loan gets transferred to a new mortgage company, the new mortgage company must honor the loan modification. This is because your loan is a contract. If it is truly modified, then whoever gets that loan (that contract) must follow it. What should you do if this happens? My suggestion is to be very aggressive on this so you can get it fixed… (Read more)
“I’ve been sued for ejectment after a wrongful foreclosure and I did not answer. I just got a default judgment. Will this hurt me suing my mortgage company?” After a foreclosure in Alabama, if you don’t leave your home, then you will be sued for “ejectment” and so many folks do nothing and so they get a default judgment. (We have a full transcript and video on the 5 most common mistakes when sued for ejectment here). The person who… (Read more)
“How do I settle a collection lawsuit without hiring a lawyer?” Remember you have 5 options when sued by a debt collector (debt buyer) such as LVNV, Midland, Portfolio, etc. File bankruptcy Fight the case on your own Settle the case on your own Hire a lawyer to fight the case Hire a lawyer to settle the case So let’s talk about option three — settling the case on your own. (I’m assuming you know to file your answer to… (Read more)
What is a dismissal with prejudice and a dismissal without prejudice? A dismissal with prejudice means the case is over. That could be because you settled, or it could be because they realize they can’t prove their case and they just drop the case. With prejudice means they cannot sue you again. We have a situation right now where a case was won by a consumer but the debt buyer Main Street Acquisitions sued our client again on the same… (Read more)