Ditech / Greentree / Hsbc 2nd Nightmare

strollingastronomer

LoanSafe Member
Apr 30, 2012
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I had some new activity I'm a little concerned about. I got a letter from a Gurstel law firm saying they were retained by greentree (odd since it's been ditech for well over a year). it says "at this time no attorney with this law firm has personally reviewed the particular circumstances of your account." Anyone else ever get one of these?

I just passed five years since my last payment, but my state's SOL is 10 years for written contract. Should I be freaking out? Seems like a very generic "scare you" letter. If they represent Greentree/Ditech, is my SAD letter applicable to them? or do I need to send them one?

I was doing some reading and the SOL on Promissory Notes is 5 years here. Isn't the PN the "I agree to pay" part of the equation? If so, does that mean I'm past the SOL?

The real kicker of all this is I had THOUGHT I had reached a settlement back when HSBC had it, for around $4500. I have nothing from that, though. No receipt, no letter, nothing. So, I may have well just burned that $4500 I guess.
 
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Moe Bedard

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I could not find any other members who have mentioned the Gurstel law firm. A quick Google search shows they are a real law firm and they do work for creditors.

What is a SAD letter? I assume you mean a cease and desist letter and if so, you would need to send a new cease and desist letter to this law firm.

You had already settled this for $4500 but that was never recognized or paid as settled by HSBC?
 

strollingastronomer

LoanSafe Member
Apr 30, 2012
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Correct. I looked them up, too. Can they sue without foreclosure? I'm still under water on the 2nd. Yes, I don't have any receipt or anything, paid HSBC, but never went away and did not change principal. I have given up on that after 5 or 6 years gone by... how does the SOL work regarding promissory note versus contract?
 

Moe Bedard

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Under contract law, a verbal agreement is a legally binding contract. But you would have to sue them to prove that and that would probably cost $30k to do so.

No, they cannot sue without foreclosure unless they charge off the loan which would make it a personal debt. They can then sue you personally without foreclosing to get a judgment.

The SOL goes from the last date of payment.
 

strollingastronomer

LoanSafe Member
Apr 30, 2012
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I am preparing a cease and desist letter and wondered about a couple of things. I wondered about adding info about settlement offer and about the fact that my house in a sad state of disrepair and has never been updated. There are some structural issues that need addressed, but could that cause me problems in some way? If they are considering my property more valuable based on homes by me, they have all been extensively updated and sold for barely enough to cover my first and second, but mine would barely cover the first if sold. Should I include some of that information or should I send that in a separate letter? Thank you!
 

strollingastronomer

LoanSafe Member
Apr 30, 2012
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also, I'm finding a lot of conflicting information online regard the SOL. I have found things that say the "written contract" portion of the mortgage is the promissory note and that only has a 5 year SOL, which I'm past. I'm in Iowa, if that helps...
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,799
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Southern California
www.loansafe.org
I am preparing a cease and desist letter and wondered about a couple of things. I wondered about adding info about settlement offer and about the fact that my house in a sad state of disrepair and has never been updated. There are some structural issues that need addressed, but could that cause me problems in some way? If they are considering my property more valuable based on homes by me, they have all been extensively updated and sold for barely enough to cover my first and second, but mine would barely cover the first if sold. Should I include some of that information or should I send that in a separate letter? Thank you!
I would write them separately.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,799
456
1,000
48
Southern California
www.loansafe.org
also, I'm finding a lot of conflicting information online regard the SOL. I have found things that say the "written contract" portion of the mortgage is the promissory note and that only has a 5 year SOL, which I'm past. I'm in Iowa, if that helps...
Iowa is 10 years for a written contract and 5 years for an oral contract. see this link http://www.nolo.com/legal-encyclopedia/statute-of-limitations-state-laws-chart-29941.html

In May 2015, the Iowa Court of Appeals issued a decision in U.S. Bank, N.A. as Trustee in Trust for SASCO 2006-BC3 Trust Fund v. Jereme Lamb, holding that a mortgagee does not lose its mortgage by taking a judgment; the mortgage remains a lien that can be foreclosed until the debt is paid. see this link @ https://www.dickinsonlaw.com/blogs-articles/2016/01/29/iowa-supreme-court-affirms-iowa-code-section-615-11-bar-lender-pursuing-foreclosure-decree
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
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Southern California
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You are welcome. Sure, my email is moe at loansafe.org.
 

strollingastronomer

LoanSafe Member
Apr 30, 2012
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I sent those a week or so ago, not sure if you got them or not. I hit that "30 day" mark and don't want the calls to start, so wanted to send... was looking forward to your input. thanks.
 

strollingastronomer

LoanSafe Member
Apr 30, 2012
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thank you so much for all your help, Moe! now some waiting, some more anxiety and then dealing with the vultures... and lots of praying. :)
 

moretrouble

LoanSafe Member
Nov 14, 2009
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thank you so much for all your help, Moe! now some waiting, some more anxiety and then dealing with the vultures... and lots of praying. :)
Try not to worry too much, no need to pray. Take it as they come. You only hurt yourself if you do. I had an HELOC with HSBC originated in 2006. After I stopped paying due to hardship. HSBC sold the loan to GreenTree in 2014. GreenTree (Ditech) tried to collect, I wrote them DV letter asking for prove. They sent a copy of my note with an forged alonge, I challenged the alonge. They went away. They still send me monthly statement with the notice "We can not take legal action due the SOL has expired..." A lady called me asking me what my intention was. I told her my intention is to do nothing, if they want they can sue me. They hanged up. Do not let them bully you around. A bunch of junk -debt buyers trying to get rich on uninformed debtors. Good luck to you.
 

strollingastronomer

LoanSafe Member
Apr 30, 2012
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weird, almost a month after sending letter, I just noticed this has been removed from equifax, but listed on trans. it's has had various states of closed, in-collection, written-off, etc. It wasn't on any reports for a few years, then appeared after ditech (then greentree) acquired it.

does this mean something? should I be prepared to be sued or something else? Sure seems like a lot of hassle for a multi-billion dollar company to put into less than 30k.

thanks!
 

strollingastronomer

LoanSafe Member
Apr 30, 2012
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After nothing for almost two years, yesterday I received a letter from the law firm saying I could cure the default by paying around $2k and if I default again in 12 months, they may foreclose... obviously NOT a settlement offer. I'm gaining some equity, but we were in a bad flood over the summer and the work is still in progress, so the house is a bit of a disaster. Should I ignore? Respond with another request for settlement? Anyone else get one of these odd offers to cure a 8 year old default?
 

moretrouble

LoanSafe Member
Nov 14, 2009
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After nothing for almost two years, yesterday I received a letter from the law firm saying I could cure the default by paying around $2k and if I default again in 12 months, they may foreclose... obviously NOT a settlement offer. I'm gaining some equity, but we were in a bad flood over the summer and the work is still in progress, so the house is a bit of a disaster. Should I ignore? Respond with another request for settlement? Anyone else get one of these odd offers to cure a 8 year old default?
I would not pay. It's a violation of Unfair Trade Practice Act to collect on a loan after 6 years. Ditech tries to suck me a settlement from time to time. I always told them "go ahead and sue" they always went away. Read your state statutes on Unfair trade practice, and unfair debt practice. They may try to forge your note by adding an allonge. But if they are only asking for 2K, they are not to spend 5K minnimum to foreclose. The act of threatening to foreclose without th right to do so is also a violation of state law. Look it up.
 

strollingastronomer

LoanSafe Member
Apr 30, 2012
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They never used the word "foreclose" to be safe ... they say "take legal action."

I am replying that I want a settlement offer... Our house got nailed with a flood last summer and the work is still in progress, so the value has tanked quite a bit.
 

strollingastronomer

LoanSafe Member
Apr 30, 2012
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I got a letter Saturday from the lawyers asking for copies of the settlement letter, receipt, check, etc. I have told them in at least 3 letters that I don't have anything and that is why I'm willing to negotiate a settlement AGAIN. They gave me 10 days to respond. I'm basically just going to send the same letter, again. What should I make of this? I am worried they will foreclose or sue me. Any advice?
 

OneHugeMess

LoanSafe Member
May 30, 2016
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Can you not request records from the bank the check was made from? If it was a Cashier's Check, that was purchased with Cash -- you still may be able to get a digital copy of it. Personal Check images should also be saved, even on a closed account, for quite a long time.
 
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strollingastronomer

LoanSafe Member
Apr 30, 2012
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It was purchased at a small store and they have 7 year records retention... it's been 9 years. It was an oral agreement with a collection agency and I think they may have tricked me to get a big payment. I was dumb and will never do anything with an oral agreement again. I'm less worried about trying to prove something I can't and more worried about trying to reach a new agreement (in writing) to avoid foreclosure/lawsuit. Seems like a lot of nonsense on their part for $29k. I still owe $120k on the first and house is maybe worth $140k or $150k with a tail wind on a good day and that was before the finished basement flooded last year... right now it's still gutted down there.