January 23, 2010

Farewell to Infamous Mann-Bracken

Filed under: Collections,Judgment

Sarah Bloom Raskin, Maryland Commissioner of Financial Regulation, announced that her office, a division of the Department of Labor, Licensing and Regulation, has summarily suspended the collections activities of Rockville-based Mann-Bracken, which describes itself as one of the nation’s largest debt collections law firms. This enforcement action follows an investigation which revealed that Mann-Bracken was ceasing business activities, such as failing to cash checks that had been sent to the firm in connection with collection related matters. Last week, the firm notified Maryland courts that it “will be closing at the end of the month” and was “working with clients to transfer cases.”

“We are determined to make sure that consumers receive the protections they deserve whether collections are done through the mail, on the phone or, increasingly, through our courts. When they do not, we will act and act quickly,” DLLR Secretary Alexander M. Sanchez said.

The State Collection Agency Licensing Board, a board within DLLR’s Office of the Commissioner of Financial Regulation, issued a summary order today that suspends all of the firm’s consumer debt collections activities, including collections actions in Maryland courts, and prohibits the filing of further collections-related cases.

“This is yet another in a string of problems we are uncovering as the collections industry has made a headlong rush for our state’s courtrooms,” Commissioner Raskin said.

Last month, the Commissioner of Financial Regulation reached an agreement with Encore Capital, Midland Credit Management and related parties to settle alleged violations of federal and state debt collection laws. That settlement included a civil penalty of $998,000 and an agreement to alter certain business practices to ensure that both their litigation-related collection activities and their non-litigation (or “traditional”) debt collection activities comply with all applicable state and federal laws. Mann-Bracken represented Encore-Midland, as well as various other businesses, in thousands of collections-related actions initiated in Maryland courts over recent years.

December 8, 2009

Tennessee Chasing After Me

I live in Tennessee and I had a Rental Property that was Foreclosed on in 2008. Wells Fargo held the original Mortgage and sold the property for less that the amount that I owned. I received a 1099-A and thought I was done with my Rental Nightmares!

I recently recieved a letter from a out of town Collection Agency stating that I owed 19K!!

I do not have the means to pay this debt, that’s why I loss the Property!

I know my credit is ruined but what else can they do to me! “You can’t squeeze blood from a turnip”…or can you???

Thanks for your advise

Scott (more…)

December 1, 2009

Paying Old Collection Accounts Bummer

I had a credit score of 583 and about $2300 worth of collections and negative things on my credit; 4 months ago i paid all of this off. Today i checked my credit, and it only went up 13 points to a 596. I have a mortgage that i have never been late on. Why didn’t it go up more? I need an auto loan & my bank won’t lend me the funds due to my score…! I need answers.

Jason (more…)

November 30, 2009

Chase Sends To LCS After Short Sale

Filed under: Collections,Short Sale

Has anyone ever hear of a collection Company coming after someone for a satisfied mortgage?

Last month I completed a short sale my house, the Bank, Chase Mortgage, received a fair price, they signed off on everything. At the time of sale and closing remaining balance, which was in writing, was $0.00, I owed nothing, I was free and clear.

Chase sent all the paperwork and the lien release to the title company and we closed, the new owner took possession, all was well. 3 weeks after the closing, I just received a notice from a company apparently representing Chase called LCS financial stating I owed just shy of $60,000.00!!!!

There was no paperwork or ANYTHING from Chase or the title company at closing that stated the loan was not satisfied. Is this a scam or has Chase sold the paper to some clown company who thinks they will receive a few bucks???

Any helpful info is appreciated.

Andrew (more…)

November 19, 2009

Some Help From Brian For Crystal

I currently do not have any credit cards. I have a very poor credit score of 574. Last month and this month I paid off about four accounts. I tried to negotiate a pay for delete but they said that they do not do that and made me think that I was crazy. They were all telling me things like that doesn’t exist or we can’t delete and account. They all said that all they could do is update it to show paid in full, and that would indicate a satisfactory account. Instead what has happened is it says Paid, was in collections and my score hasn’t increased at all. I have a terrible run of bad luck lately and I desperately need a car. I am trying to get my credit in order to be able to get a car at a reasonable APR. The thing is I need the car like yesterday.

I have about six more collections accounts to pay off. They all total about $2229.00. The one account that I have in good standing is an auto loan that I am currently still paying on because when the car was totaled I was upside down. That amount is $3973.00.

Where do I begin? What do I do first. I will have the auto loan paid off by 12/18/2009. Do you think that I will be able to get approved for a decent loan by January if I pay off the current loan and pay off all the other accounts? The problem that I am facing now is that places will finance me on used cars with high mileage for unreasonable prices at 24% APR. Please help me. I am lost.

Thank You,
Crystal (more…)

October 19, 2009

28 Year Old

Filed under: Collections,FHA Loan


MARIE (more…)

October 17, 2009

MERS Satisfaction

I have a Satisfaction of Mortgage recorded in Palm Beach Florida by MERS in conjunction with a short sale of my property. The language reads as follows:

Know all men by these presents: MERS is the owner of and holder of a certain mortgage deed executed by My_Name to MERS bearing Date 01/01/2005 recorded on 01/13/2005 in Official Records Book OR XXX234, Page 999, Instrument # XXX2228899 in the office of the Clerk of the Circuit Court of Palm Beach County State of Florida, securing a certain note in the principal sum of $300,000.00 Dollars, and certain promises and obligations set forth in said mortgage deed, upon the property situated in said State and County hereby acknowledge full payment and satisfaction of said note and mortgage deed, and surrenders the same as canceled, and hereby directs the Clerk of the said Circuit Court to cancel the same of record.

Witnessed sealed notarized etc. and recorded.

Is this a release of my note as well as the mortgage? I have no cancelled note, and have not yet received a 1099C from my “lender”. They reserved the right to pursue a deficiency judgement in their short sale letter. This sure looks like MERS recorded the note as paid in full and satisfied along with the mortgage.

Jeff (more…)

September 18, 2009

Vicki & The Banks

Filed under: Collections

I had a perfect payment history until Augusts payments were due and had no money to pay them.  Of course due to my employment situation. I am 60 and am finding it not so easy to be hired.  I am cleaning houses to pay for my car and insurance. The banks are starting to call and I dont know how to tell them when I can make any payments at this point.  What is likely to happen? I dont have any property or any money other than what I earn whenever I can get a cleaning job?

Vicki (more…)

September 10, 2009

Thoughts After Foreclosure

Filed under: Collections,Foreclosure

I was “young and naive” when I bought a home in 2006.  New home totalled $750K and mortgage broker found loan based on that.  Note that I was naive to beleive that the mortgage broker would find the best loan for us as they worked for the home builders themselves.

Anyways, I signed loan docs w/ Wells Fargo, Alt-A, 80/20, Interest only 5 years w/ First loan $565K, Second HELOC $185, 0% down, mortgage payment excluding insurance+property tax $4K/mos. (This is the worst loan ever I don’t know how I thought I would survive w/ this loan)

In 2008 I hired a real estate attorney/broker for legal advise.  He said I would be able to walk away w/out deficiency judgment since my HELOC was originated at same time of 1st loan and it was used for purchase of home.

I have no debts besides my >100K student loans.  My income is very good despite the economy.

Reasons for letting go home:
1.  Decrease hours at work due to chronic back pain 2.  Have 4 dependents to support 3.  First loan resets in 2010 to ARM, second loan balloon payment due in 2012.
4.  My income 7K/mos and my payments had been 5K/mos (mortgage+ins+Prop tax). That leaves very little for any other expenses.
5.  Bank would not work with me without me giving them my financial status.  My attorney said not to give them any financial info about me.
6.  I’m upside down 310K and no equity in home
Thus I walked away.  My home foreclosed on 6/09 and sold that very same month.  I have not heard from the bank at all.  My Fico dropped 768 to 650.  I see that credit report lists first loan as “Foreclosure proceedings in progress” but the second loan it is categorized as “bad debt/Collections”.

Now I’m afraid that the bank has sold my loan to a debt collection agency.  I have read thru the site but still have questions.  I wished I had seen your site before the foreclosure as I would have considered a short sale.  Now what do I do?

1. Contact Wells Fargo? if so what do I say?
2. Do nothing?
3. If I save for 3 years I would be able to cash out on a home <150K — then I risk collection and wage garnishment

What to do? what to do?Hmmmm…

Thanks for any advice you can give.

Lee in CA (more…)

August 20, 2009

Portfolio Recovery & Professional Debt Management Busted

St. Louis, Mo. – Attorney General Chris Koster today filed suit against two debt collection companies that are operating scams to collect debts from citizens who do not owe the money.

Koster filed law suits in St. Louis against Portfolio Recovery Associates, a public company based in Virginia, and Professional Debt Management located in Kansas City.

Koster said Portfolio buys old and bankruptcy-discharged debt, often from another bad debt buyer, and then tries to collect, sometimes through court action. He said the company often is attempting to collect on accounts that are already paid or have been discharged in bankruptcy; sometimes they try to collect from the wrong consumer or for the wrong amounts. He said the company has threatened to garnish consumers’ social security checks, which they have no authority to do, and has refused to provide consumers with proof that the debt is valid.

Koster said Professional Debt Management uses scare tactics, leaving messages on consumers’ phones that there is an emergency. He said that like Portfolio, they attempt to collect on accounts already paid or from the wrong party.

“The Attorney General’s office intends to take aggressive action to protect Missouri consumers,” Koster said. “I am asking the court to issue a permanent injunction prohibiting these companies from violating consumer protection laws and to order that they provide full restitution to the people they have harmed.”

Koster also is asking that the court impose monetary penalties and require the companies to pay all court costs.

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