Phil’s Qualified Written Request/s

Hi Paul,

I short sold my home in October, 1st and 2nd mortgages with Wells Fargo.  The first is settled, but the second has charged it off and is attempting to collect.  I have 2 questions. 

I already sent them a qualified written request via CMRRR, which they signed for on Jan. 17th.  It will be 20 days on Friday, and I haven’t received an acknowledgment from them yet.  What do you suggest the next course of action should be if they miss the 20 day deadline? 

Secondly, they sent me a 1099A, which I understand is only applicable to cases involving abandoned property or foreclosed property.  Is this appropriate or legal in a case that was a short sale, with both liens released by the bank so that title could be transferred to a new owner? 

The property was never abandoned or acquired in any way by the lender (foreclosed.)  Any suggestion on how to pursue this matter? 

Thanks so much for your insight, it is very valuable.

Phil

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Hello Phil,

January 19, 2009 was Martin L. King Jr. Day and February 16, 2009 is President’s Day, so the twenty-days (excluding holidays, Saturdays and Sundays) is up on February 17, 2009.  I would give a few days to account for mailing and send a second letter CMRRR advising that they have violated 12 U.S.C. § 2605(e)(1)(A); Reg. X, 24 C.F.R. § 3500.21(e)(1).  

What was requested in the Qualified Written Request?  Did you request the identity of the owner of the loan?  You might also request the original loan docs, evidence of assignments from the original lender to the present lender, the securitization trust to identify the pooling and servicing agreement, and more. 

As to the second question, it sounds like the first mortgage sent you the 1099-A, and I’m not sure that in and of itself your tax liability would change at all whether it was a 1099-A or 1099-C.  Check with your tax advisor and look into the short sale gain, short sale loss.

Read: McLean v. GMAC Mortgage Corp. No. 06-22795 (S.D. Fla. Dec. 16, 2008)

Thanks for the questions and hope this helps.

Paul

This author is not an attorney and this information should not be considered legal advice.  This author is not a tax advisor and this information should not be considered tax advice.  Please consult an attorney for legal advice and a qualified tax advisor for tax advice.