Loan Services Abuses Post-Bankruptcy
Most people who file for Chapter 13 Bankruptcy do so because they are in arrears on their mortgage or they are facing a foreclosure. A Chapter 13 Bankruptcy allows a debtor to catch up on their mortgage arrears over a three to five year period. Upon the successful completion of a Chapter 13 Bankruptcy, a debtor is supposed to be current on their mortgage.
Unfortunately, debtors are increasingly coming across unscrupulous mortgage loan servicers that tell debtors that they are still several thousand dollars in arrears upon the successful completion of their case.
Mortgage loan servicers are hiding their nefarious intentions by sending unsolicited loan modification agreements where they add thousands of dollars to the principal balance of the loan. They hope that the recently discharged debtors will sign the loan modification agreements without questioning the increase to the principal balance of the loan.
Other mortgage loan servicers simply tell you that you are in arrears and they stop accepting your payments and then put you back into foreclosure.
These are two ways that mortgage loan servicers charge extra fees for which they are not entitled. If you have recently successfully completed a Chapter 13 case and you are running into these issues with your mortgage loan servicer, then you are not alone. You should also know that you have rights against your mortgage loan servicer if they are trying to tack additional fees onto your loan.
Your rights can be vindicated either by going back to the bankruptcy court or by filing a complaint in the federal district court. You likely have claims under the Fair Debt Collection Practices Act (FDCPA), the Real Estate Settlement Procedures Act (RESPA), for Violations of the Bankruptcy Injunction, for Breach of Contract and Unjust Enrichment.
Several of these statutes provide for fee shifting which means that the mortgage loan servicers ends up paying for your attorneys’ fees. If you believe that you have been a victimized by your mortgage loan servicer, then you not hesitate to contact Gross & Patterson, LLC.