Debt Collection After Foreclosure

by Wes
(Georgia)

I am being pursued by a Debt Collection Agency who indicates they represent the mortgage company that I had my rental with prior to forclosure. The foreclosure took place 2 years ago. I am im the process of writing to the collection company who says they "represent" the mortgage company. I wish for them to validate the following:

Agreement with client that authroizes thiem to collect the alleged debt
Agreement that bears signature of the alleged debtor wherein he promises to pay the creditor
Complete payment history on the account so as to prove the debt amount is valid.

Is there anything else I should ask? Does it matter whether the amount is owed to collection agency..? I understand they will by paper for pennies on the dollar hoping to collect on a settlement. Pleae advise.

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Aug 24, 2010

Debt Collection after Foreclosure
by: Mary

Thanks for submitting your debt collection question on our Q&A page.

I assume that since your rental property was foreclosed on, when the home was sold after the foreclosure, the sale proceeds were not enough to cover the total outstanding balance on the property and all of the costs the mortgage company incurred taking back the house and selling it, and you have not paid the full amount of the resulting shortfall or deficiency. And so, the debt collector is trying to collect that money from you.

When a debt collector contacts you about a debt, the federal Fair Debt Collection Practices Act (FDCPA) says that you are entitled to request that the collector provide you with written verification of the debt. However you must make this request in writing within 30 days of the date that the debt collector contacts you for the first time. If you are making your request within the 30 day time frame, the debt collector is obligated to respond to you in writing. If 30 days have passed, then the debt collector is not obligated to respond to your request although you can still ask for verification.

If you are making your request within the 30 day time period, the collector's written response to you should indicate the amount of the debt he says you owe and any debt-related expenses he is trying to collect, like interest on the debt, for example. However, the FDCPA does not spell out exactly what documentation the collector must give to you when you ask for a debt to be verified. So, although you are free to ask for all of the information you outlined in your question, in reality, that information is rarely provided.

If the response you receive from the debt collector is unsatisfactory in your opinion, ask for a more detailed accounting, and if the debt collector does not respond to your request, or if the information he provides continues to be unclear, get in touch with a consumer law attorney in your area immediately. Find out how to get FREE or low cost legal advice about debt collection from a consumer law attorney here.

By the way, be sure to send all of your letters to the debt collector via certified mail with a return receipt requested and make a copy of each letter for your files. They could be helpful if it becomes necessary to take legal action against the collector.

Good luck resolving your problem and please do not hesitate to seek out legal help if you are unable to resolve your problem on your own.

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