I just received a notice about my loan from Bank of America, which had been serviced by BAC Home Loans. They are now transferring the servicing to Bank of America N.A.
Most of you who have Bank of America loans will have received this notice. Many of you probably think nothing of this. DON’T MAKE THIS MISTAKE!
This could be one of the most important documents ever in your foreclosure defense.
You see, BAC Home Loans were told to stop their foreclosures under a Bank Consent Order with the FDIC. So, in order for them to continue to steal your house, they had to move their entire portfolio over to someone else…so they can continue to foreclose on your home. In other words, following the letter of the law, but not the spirit of the law. Very dirty.
Before we go further, take a look at my notice below:
Here are a few things you need to pay close attention to with this notice.
a) Governed under the Fair Debt Collections Practices Act as a Debt Collector.
We’ve said all along that these servicers were not the original creditors. They are a third party debt collector. Sadly, when you file a claim against these guys, their usual response is “we are not governed under the FDCPA”. It is funny how they can pick and choose when the law applies to them…only when it is convenient. In our forms, letters and civil actions against these guys, we name specific violations and requirements under the Fair Debt Collections Practices Act. They typically respond with a form letter that says “you quote no authority that gives you the right to this information” or some junk like this.
Here is an open admission that they ARE GOVERNED under the FDCPA as a third party debt collector. This is very important.
b) The name of the creditor who actually (supposedly) owns the debt/promissory note.
These banks have done their darnest to hide the identity of the real creditor of the debt and present to the world that they are the owner of the debt…including recording documents at the County Recorder’s office to this effect. Essentially, they want the protection given by the law for a “creditor” without actually being one. They are using what’s called “a presumption of fact”. A presumption is a fact that unless rebutted is fully admitted. Another word for this is “the house advantage”. They have the benefit of the doubt in the eyes of the court.
You must hold them to this. If they are not the real creditor of your loan, then they do not have the authority to foreclose on your house under Federal Rules of Civil Procedure Rule 17 “an action must be taken in the name of a real party of interest”.
c) “Unless you dispute the debt within 30 days of receipt of this letter, we will assume the debt to be valid.”
Most people read this notice would just skip this and say “so what”. To be honest, I did too until a friend pointed this out to me this morning. Please learn from my mistake. You have nothing to lose. If you don’t dispute the debt…then they can go after you and your house. Remember…they are a debt collector. They don’t own the debt. They are collecting on the debt using this assumption. If you don’t dispute the debt, then shame on you!
To make it easier for you, I’ve already created a sample letter to help you dispute the debt. Click on this link to download it Transfer Rebuttal Letter. USE IT! DISPUTE THIS DEBT. If in the future you want to fight this fraud, you can always come back and say you disputed the debt. If you did not, then “oh well. So sad, too bad.”
Please forward this link to all your friends. <- This is very important. While this applies specifically to Bank of America, chances are, the other servicers/pretender lenders are also doing the same.
If you haven’t read the Foreclosure Defense Handbook, you can download a free copy here: https://www.consumerdefenseprograms.com/
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