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Bank's Reporting of Mortgage During the Pendency of Foreclosure Lawsuit


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Credit reporting is not exclusively linked to a court making a ruling.  They are reporting the account to be in collections and 180 past due.  From what you said, this would be accurate since you stopped paying just over a year ago.  Were you behind when the bank told you that they would stop accepting payments from you?  What was the situation surrounding that?

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Not at all, I understand better than you could imagine the kind of boat you are in.  My opinion, it's time for you to find an attorney and have your situation reviewed, if possible.  In my own situation, I was current on the mortgage and was able to prove that.  They claimed I was not making payments when I had proof that I not only made the payments, but I had proof that they were cashing our checks.  It did not matter to them.  They told me 5 years ago that they were refusing to accept payments anymore.  They tried to foreclose on me--twice.  The first time, their case was dismissed because they never served me.  The second time was initiated three years after the first, and when they saw out counter claim, they bailed on the lawsuit and claim to have sold the loan.  According to my state law, they have abandoned their case.  I spent much of the time since they refused payment trying to work with them.  I went through a law office, trying to secure a loan mod and get everything investigated...no dice.  Two years ago, right about the time that the loan was supposedly changing hands, the original lender finally admitted what it had done wrong, and that is a very long list.  Credit reports trashed, tons of false late fees, thousands of dollars in overcharged  insurance premiums, other "ancillary fees" that they still cannot even identify.  They admitted that they cashed my payments, lied about not receiving them, and kept the money.  They admitted a whole lot of stuff....which I got on tape, since it's legal in my state to record phone calls.  And then, the biggest part of the mess....they sold the loan off way back in 2006 and were merely the servicer all this time.  But they sold it off into a securitized trust, and at this point, there's no telling where all the payments I made ever ended up.  They never told us of the sale.  They also put PMI on the loan without ever telling us.  In fact, they required us to take out a slightly larger loan than we intended to, and I finally figured out why.  The only way they can put PMI on a loan is if the loan covers a certain percentage of the value of the house.  Anything below that LTV percentage, and PMI is not a possibility.  So, they required us to take out a loan a bit higher than what we originally wanted, so that the LTV would permit PMI.  From the looks of things, they then sold the loan off and pocketed our payments.  Then they declared default back in 2010, and with PMI, they probably got paid already.


The outcome of mine is still in the works but it sure looks good for me.  For them?  Not so much.

When they refused payment, did they send you notice of default?


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