HSBC/HFC mortgage....sold to Caliber home Loans in the middle of litigation. what should I expect?

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As stated, I am in litigation with Household and this has been an ongling set of problems since 2011.  In a nutshell, I was sending payments to them as certified funds, by certified mail, because they "misplaced" some payments and we still do not ever know where that money ended up.  To this day, they report us as late back then on our credit report when we were current and can prove it.  Everything came to a head near the end of 2011, when I got them to admit on the phone that they messed everything up(have the call recorded), and that they promised to fix it.  They never fixed anything, and to this day still report those payments as never being made.  They then filed against us for foreclosure, and we filed a counterclaim for a TON of FCRA violations and other issues.  Mysteriously, last year, they erased all the extra fees that we were being charged--a LOT of late fees when we were not even late, and so on.  They also "discovered through independent audit" that they had overcharged us a little less than $3000 for our insurance around that same time last spring.  But they still charged us interest on those numbers for YEARS....then, they removed the fees themselves, but not the excess interest charges, etc etc.


They filed, we answered denying and filed our counterclaim.  They filed a general denial to our counterclaim.  The case has been sitting stagnant ever since, with no other filings or hearing dates set at all.  In the meantime, of course, they do not accept payments since we are in litigation. 


Fast forward to last week.  We got a notice in the mail from Caliber Home Loans, telling us that they were the new servicer for our account, and that the new owner is LSF8 Master Trust, whatever that is.  A google search on LSF8 pulls up very little.  According to Caliber, the sale date was 12/20/2013....but Household still is servicing the account until "around January 24th" when the transfer is supposed to officially take place.  In the meantime, Household reported on our credit reports on 12/31/2013, still reflecting the many errors that they have been reporting for years now.


So what should I expect out of this transfer?  The only info about Caliber that I find is not encouraging....any thoughts at this point would be appreciated.  Household has told us repeatedly that they cannot do anything because of the litigation....I called them this past week and asked about this sale.  I was told that everything I had been told up to now from HFC was wrong, that "they could and would accept payments from us", and so much more.  The guy on the phone put me on hold and had a supervisor review my account notes....and then comes back on the phone telling me "well, you are right....I can see everything that you have said here in your notes.  I see that you called us quite a bit, I see several times where you requested a review of your account, I see a whole lot that went wrong...."  yes, I recorded this one as well.  not sure how much it would help us in our case, especially since the account has now been sold, but we do still have our counterclaim to pursue.  I requested a jury for that.  Can anyone tell me if the new company is usually willing to make arrangements, or if they simply get added into the litigation?    Thanks in advance

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The first thing I would do is file a motion to dismiss all of Household's claims since they are now not a party in this action. Make sure to keep your claims open however. This should move that case again.

As for Caliber, give them a call and see what they got from HFC. If they got nothing, inform them that you have 3 years of notes, recorded call, etc. and that they have a choice, we can either play nice and get this resolved or we can play hard. This call is to inform you that if you want to go the hard route, I am ready to go.

If you get the dismissal and Caliber refiles, then one of your counter claims should be for a quiet title and that you demand the mortgage and note together. This is a claim on federal case law so the state courts have to honor it (the Minnesota courts recently got slapped over that). That might get them to sit up at take notice because you are demanding the mortgage/deed of trust is to be removed from the title.

There is another member here, gwheelock[?] who is not in the 20th month of his foreclosure proceeding and that has yet to reach discovery so it sounds like you have similar company.

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I know Kraftykrab, live about 5 minutes from him.  He put the floors in my house and my shower too.  not sure where he has been on here lately but here's a little bit more information.

Louisiana has a 5 year statute of limitations on a promissory note, that starts upon acceleration.  Kraftykrab's loan was accelerated in October of 2010.  The 5 years has passed now.  however, there's another statute of limitations within the courts, I'm close to positive that it's LRS C.C.P. Art. 561 that spells out the 3 year statute for abandonment of a lawsuit.  Art. 561 specifies that if neither party takes any action in the prosecution or the defense of the claim for 3 years, then dismissal is automatic.  If Kraftykrab were to motion to dismiss the case right now, it could wake up the attorney, who is representing both Caliber and HSBC.  That in turn could cause them to file a motion to substitute the plaintiff and the case moves on.  Kraftykrab did speak with an attorney a few months ago.  It was established at that time by a pretty hefty document trail that the acceleration did take place more than 5 years ago, and also that the 3 year limit is up in less than 2 months from right now.  Krafty's laying low  on this.  If the next 2 months go by without any action on HSBC's end, then Krafty will file a motion to dismiss, and at that point, with the laws here, even if they tried to substitute a plaintiff at that time, it would be too late.  The court will have to dismiss the case.  There is some solid case law precedents here for this.  If their action is one day beyond the 3 year limit, and it is clear that they did absolutely no effort at all to maintain their action in that 3 years, the court must dismiss.  And at that time, since the 5 years has passed on after acceleration, Caliber is welcome to file a new claim, only to have it shut down by a statute of limitations defense.  He also has an even bigger case against Caliber now than he did against HSBC, and once this is dismissed, Krafty's going on the offense.

Wheels up,


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