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Can a mortgage servicer give you false information in order to get you to accept an unsolicited modification?

Decatur, GA |
Filed under: Foreclosure

I am behind on my mortgage and the bank called me to congratulate me on qualifying for a modification. Before talking to them, I went to the post office and found a package with a $100.00
reduction in my mortgage payment. when I asked if if did not have to give them information before qualifying, they said no; this was a "temporary modification" with a 3 month trial period and that their offer was based on the value of the property. When asked what was the value, they quoted it almost $50,000 over what it is really worth. I think even if the information about the modification was true, then the amount they are asking me to pay, if based on the value should be a lot less. I would appreciate your help. This loan was discharged in a Chapter 7, never re-affirmed and was transferred.

Attorney Answers 3

Posted

I'm not sure why you'd complain about a bank reducing your payment $100 on a debt you can't be sued for, but if you suspect a catch, show it to a lawyer.

If you find this answer helpful, please mark it here on AVVO as helpful. In answering you, I am attempting to communicate general legal information and am not representing you (and am not your lawyer). Do feel free to call me at 404-768-3509 if you wish to discuss actual representation (the phone call also does not retain counsel; that requires an office visit and appropriate paperwork). In that a forum such as this provides me with limited details and doesn't allow me to review details and documents, it is possible that answers here, while meant to be helpful, may in some cases not be complete or accurate, and I highly recommend that you retain legal counsel rather than rely on the answers here. (You can also email my office at geaatl@msn.com . An email also does not retain my office, but can help you get an appointment set if you prefer not to call). I am happy to discuss possible representation with you. Any information in this communication is for discussion purposes only, and is not offered as legal advice. There is no right to rely on the information contained in this communication and no attorney-client relationship is formed. Nothing in my answer should be considered as tax-advice. To ensure compliance with IRS Circular 230, any U.S. federal tax advice provided in this communication is not intended or written to be used, and it cannot be used by the recipient or any other taxpayer (i) for the purpose of avoiding tax penalties that may be imposed on the recipient or any other taxpayer, or (ii) in promoting, marketing or recommending to another party a partnership or other entity, investment plan, arrangement or other transaction addressed herein. I am also required to advise you, if your question concerns bankruptcy, that the U.S. Congress has designated Ashman Law Office as a debt relief agency that can help people file bankruptcy.

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4 comments

Asker

Posted

Thank you for your response but I am looking for specialized information and I am neither separated or getting a divorce.

J. Jeffrey Williams

J. Jeffrey Williams

Posted

????

Glen Edward Ashman

Glen Edward Ashman

Posted

I'm confused too - I have no idea why the poster mentioned that he isn't in a divorce, as it is irrelevant.

J. Jeffrey Williams

J. Jeffrey Williams

Posted

Oh, I think I know why- - the poster saw that you were listed by Avvo on this question as "East Point Divorce & Separation," and he did not know that you are equally (if not more) competent in foreclosure and debt issues. I know a Lawrenceville attorney who listed several areas of competency with Avvo, and the one they usually print with his name is "Power of Attorney Lawyer!"

Posted

To add to Mr. Ashman's usual excellent advice, I had the following thought: As the loan was never re-affirmed, it cannot, as Mr. Ashman said, be presently collected on. But if they can induce you to agree to a new "modified" mortgage, in which you sign new documents promising to pay, they can sue you for a deficiency judgment after foreclosure (which also may explain any inflated amount.) Also, they can turn around and revoke the "modification" after the trial period on one pretext or another. Or, maybe they bought the mortgage from the former lender really cheap, and really do want you to be able to succeed, as you have been behind.

If you found my answer useful, please check it as "helpful" here on Avvo. Answers to questions on Avvo are for general informational purposes only. Proper preparation of a bankruptcy case involves many factors and variables, and may lead to a different answer than that given here when all the facts are taken into consideration. The fact that a general question was answered on Avvo does not establish an attorney-client relationship; that only happens when both you and our firm sign a formal contract and a retainer is paid and collected.

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Posted

Since the loan was never reaffirmed, you have no personal obligation to pay it. However, if you want to keep the house you need to find a way to make sure the loan is being paid so that you can eventually have their lien removed. Working with the mortgage company is not a bad idea, but know that signing certain documents may reinstate your personal obligation. The fact that you did not ask for the modification is not unusual, in that you have a mortgage company who is somewhat hung out to dry and has every incentive to get you back in a performing loan. If this is an offer from someone other than the actual mortgage company, they are just trying to get your business and make money off the deal, so be very careful with that. The actual mortgage company has the final say in any modification. Finally, i have had mortgage companies tell my discharged clients that they would have to reopen their chapter 7 and reaffirm the mortgage before they would discuss modification. I advise my clients against this. Whatever you do, do not pay anyone money other than your mortgage company, do not stop making payments (as they will tell you you need to do to qualify but just puts you in danger of foreclosure), and read everything carefully (or take it to a lawyer to have them explain it to you).

The above information is general in nature. In order to obtain more specific and legal advice upon which to base your important decisions, please contact our office directly for a free phone or in person consultation. Robert M. Gardner, Jr. Hicks, Massey & Gardner, LLP hmgrmg@yahoo.com 53 W. Candler St. Or 718 Oak St. Winder, Ga. 30680 Gainesville, Georgia (770) 307-4899 (770) 538-0555 gadebtlaw.com hicksmasseyandgardner.com serving metro Atlanta and all of Northeast Georgia Bankruptcy, Divorce, Personal Injury, Worker’s Compensation, Medical Malpractice, Adoption, Civil and Criminal Litigation

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