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1099c nightmare.

Date: Sat, 02/27/2010 - 00:49
Submitted by on Sat, 02/27/2010 - 00:49
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I need some general answers and opinions on what I am experiencing. In 8/08 our second mortgage was forgiven.In Feb. 09 we received a 1099c for the full amount of the debt.We were not expecting the 1099's and had already filed our 08 taxes.So we held the 1099's and figured we'd file a amended 08 return when we did our 09 return.From Feb. 09 to July 09 we heard nothing.Figured the debt was forgiven.Then late July a letter from our loan servicer says they sold the loan to another servicer.This servicer as soon as they took it is now claiming the debt has increased $5895 more than the debt the previous lender listed on the 1099c.And they are in collection full force. 2-3 calls a day. 2 to 3 letters a month. I have tried to discuss on the phone numerous times with the past and present servicer.Past has cut all ties with me."We don't own it we cannot help you" Present servicer is is ignoring me.I have written the servicer 3 times requesting a review and investigation into this acct.I have supplied them copies of the 1099c's.I have asked them to supply me with all documents that purtain to the sale of the loan and all copies of anything we signed.I asked them how they could purchase a forgiven loan 12 months after the debt was canceled? In short there response is a detailed transaction history that indicates nothing but a reoccuring late fee every month.It also indicates the wrong interest rate. Then there letters of explanation are vague and brief. One more or less explains to me what a charge off is and how loans are sold.But they avoided any other questions and supplied no other copies of documents.The next explanation letter more or less explains what a charge off is.Then goes into explaining a 1099c.Again they avoid all our other questions.And again supply us no documents.Now can a debt be both charged off and forgiven? I thought it was one or the other? Can a servicer sell a forgiven debt a year later? and can servicers ignore a borrowers requests for answers and help? A few people I have spoke with have said this is both unethical and violation of federal law.Others have said as long as it's within a 3yr window they can continue collection and or selling the loan.
Anyway do I have a case? The 1099c dissolves the debt and stops collection doesn't it?


Yes. This debt technically no longer exists as the 1099c was issued. Send them a letter certified mail return receipt and tell them in no uncertain terms to cease any and all communications with you, that this debt does not exist. Inform them that if they contact you again regarding the debt, or if it shows up on your credit reports that you will file suit in a court of law. Send copies of the 1099c, so they can not claim they "didn't know".

Watch your credit reports. If you get any more calls or letters, or if anything shows up in your report (other then the original creditor showing up- I am not sure about that, they may be able to have it listed as a write off, but not any CAs.) then you sue them.


Submitted by goldenbast on Sat, 02/27/2010 - 01:41

goldenbast

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You know what? I would also send a letter to the original creditor also certified mail return receipt because I don't think they can sell a debt they 1099c so either they illegally sold it, or someone is claiming they did. Find out. Give them the name of the CA who claims to own it now and that it was sold to them. Tell the Original Creditor that you are considering a lawsuit against this company and they would not want to be dragged in the middle of it. That should get them helping you mighty fast.


Submitted by goldenbast on Sat, 02/27/2010 - 01:44

goldenbast

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