Results 1 to 5 of 5

Hybrid View

  1. #1
    Join Date
    Oct 2013
    Posts
    5

    Default Sanctions for Collection of Mortgage Debt Discharged in Bankruptcy

    My question involves bankruptcy in the state of: Florida (Middle District)

    I filed Chapter 7 in October of 2009. I was intending on returning the house to the bank. My mortgage holder had an attorney who made an appearance, and asked for relief from the Automatic Stay, in order to foreclose. It was granted in December of 2009. My debts were discharged in February of 2010.

    During the course of the foreclosure, it turned out that the bank was no longer the owner and holder of the note, and the foreclosure was dismissed. I filed a motion for sanctions with the Bankruptcy court, since they had lied and told the judge that they were the owner and holder of the note and mortgage. We settled out of court for 5 figures in February of 2011.

    In the fall of 2012, the same bank began trying to collect from me. They began sending me letters informing me of my balance, calling me, and leaving notes on my door to call them. When I would call, they would state, "Your balance is $xx,xxx. When can we expect payment?" When I would remind them of the bankruptcy, they would tell me that they had no record of it. I told them that their records weren't my problem. After putting up with this for several months, I retain a new attorney, and we filed a motion for sanctions for violating the discharge injunction. We asked for actual damages.

    There was a final evidentiary hearing in May that the bank did not show up for, and the court made the following findings:

    -Debtor filed Chapter 7 in October 2009.
    - Creditor received notice of the filing
    - Debtor's debts were discharged in February 2010
    - Creditor engaged in efforts to collect from Debtor debts which were discharged for a two-year period of time, including telephone calls, personal visits to Debtor’s residence, written demands for payment, and by misreporting the status of these debts to credit reporting agencies.
    - Debtor has been damaged by creditor's actions
    - Creditor's actions were willful and intentional
    The court found them in contempt, and awarded me $13,000, plus attorney's fees. The order also specified that any further contact with me would result in severe penalties. The creditor paid me in September.

    However, since the hearing in May, they have not stopped sending me demands for payment, and leaving notes on my door. They have sent me 6 letters, and left a note on my door each and every month since then, always during the last week of the month. We filed another motion for sanctions in December. This time, not only did we ask for actual damages, but we asked for punitive damages. My hearing is set for March, and I won't see my attorney until 2 weeks before the hearing.

    Now we get to my question:
    How mad is the judge going to be, and how much cash would be customary for this sort of thing? I would assume that the judge will award more than last time, seeing as how they ignored the court last time. Then there is the matter of punitive damages.

    I am just wondering. It seems to me that I should at least get what I got last time.

  2. #2
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Sanctions for Collection of Mortgage Debt Discharged in Bankruptcy

    Quote Quoting RealEstate
    View Post
    Now we get to my question:
    How mad is the judge going to be, and how much cash would be customary for this sort of thing? I would assume that the judge will award more than last time, seeing as how they ignored the court last time. Then there is the matter of punitive damages.
    If any of us could predict the future I'm sure we'd be raking in money elsewhere.

    Quote Quoting RealEstate
    View Post
    I am just wondering. It seems to me that I should at least get what I got last time.
    You're just going to have to wait and see.

  3. #3
    Join Date
    Oct 2013
    Posts
    5

    Default Re: Sanctions for Collection of Mortgage Debt Discharged in Bankruptcy

    I wasn't asking for a prediction. Perhaps I worded it poorly. I am wondering if anyone is aware of a case where a debtor, having already gotten about $30,000 in sanctions from two motions for contempt, having to go to court a third time. If so, what was the outcome?

    I have looked and cannot find a single case where a creditor has had to be told three times to stop ignoring the court's order.

  4. #4
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Sanctions for Collection of Mortgage Debt Discharged in Bankruptcy

    I'm just curious how you got what you did given the fact you admit they were not a creditor for the purposes of your bankruptcy which is what allowed you to obtain the first payment.

    and since they were not a creditor, what debt it is they are attempting to collect on.

  5. #5
    Join Date
    Oct 2013
    Posts
    5

    Default Re: Sanctions for Collection of Mortgage Debt Discharged in Bankruptcy

    Because they were the servicer of the mortgage, but not the owner and holder of the note, which is what they told the BK court when requesting relief from the automatic stay. When we went to the circuit for the foreclosure, they stated that FNMA was the owner and holder. The first sanction request was for fraud upon the court on that basis.

    County records show a different, third bank, as the mortgage holder. That bank has no record of the mortgage or the note. Since then, things have become a bit murky. So in summary:
    1 Originating bank thinks that they own and hold the note, but cannot produce it
    2 FNMA and MERS both think that they own and hold the note, but are allowing originating bank to service it
    3 MERS assigned the note and mortgage to Third bank in 2011 and filed the assignment with the county clerk AFTER the originating bank sent me a notice that they were going to assign it to the Third bank, but neither MERS or Third bank have any record of the assignment.
    4 Originating bank also just sent me a notice that they are going to assign the note and mortgage again, this time to a Fourth bank.
    5 The originating bank has already paid me more than $35,000, and it appears like I will get even more this time.
    6 No one has been able to foreclose on my house, which is about to cross the SOL, because no one can prove who owes money to whom. My attorney says that we are going to quiet title as soon as the SOL has passed.

    1. Sponsored Links
       

Similar Threads

  1. Replies: 4
    Last Post: 10-08-2012, 07:05 AM
  2. Bankruptcy Issues: Is There a Mortgage That Can Not Be Discharged in Bankruptcy
    By abiel in forum Bankruptcy Law
    Replies: 3
    Last Post: 01-10-2012, 06:13 AM
  3. Chapter 7: Three Years After Bankruptcy, Mortgage Discharged, but Still Living in Home
    By motherofpearls in forum Bankruptcy Law
    Replies: 1
    Last Post: 06-10-2011, 09:54 AM
  4. Student Loans: Collection of a Student Loan That Was Discharged in Bankruptcy
    By cfm001 in forum Debts and Collections
    Replies: 5
    Last Post: 03-25-2011, 04:04 PM
  5. Credit Reports: Collection Agency Going After Debt Discharged in Bankruptcy, in Arizona
    By TMSHelp in forum Personal Finance And Investment Law
    Replies: 3
    Last Post: 09-10-2007, 04:52 PM
 
 
Sponsored Links

Legal Help, Information and Resources