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Damien Bosco
Damien Bosco, Attorney
Category: Real Estate Law
Satisfied Customers: 2438
Experience:  Helping you with your legal questions.
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Can a mortgage company legally pursue collection activities

Customer Question

Can a mortgage company legally pursue collection activities including foreclosure while reviewing for a modification?
JA: Since laws vary from place to place, what state is this in? And has any paperwork been filed?
Customer: The state is Colorado. I started filling out the paperwork through the mortgage company website tonight and the disclosure had a part in it that said if I agree, I am agreeing that the information is true, but also that I agree that Statebridge can pursue all collection activities including foreclosure.
JA: Has any paperwork been filed?
Customer: Not yet. We were just transferred and we are in Chapter 13.
JA: Anything else you want the lawyer to know before I connect you?
Customer: We were transferred from Freedom Mortgage in August to Statebridge. I didn't submit the paperwork. I want to know if I can disagree and still submit the paperwork for modification. It is a VA loan.
Submitted: 6 months ago.
Category: Real Estate Law
Expert:  Damien Bosco replied 6 months ago.

Hello. My name is***** am an attorney. I will review your question and develop a response. We may discuss it too. Does that sound good to you?

Customer: replied 6 months ago.
Customer: replied 6 months ago.
No. Is that in addition to the 35.
Expert:  Damien Bosco replied 6 months ago.

A couple questions: In the Chapter 13 is the lender listed as a creditor? And in the bankruptcy are you represented by an attorney? And also, has the trustee had any input regarding the mortgage. (speaking on the phone is additional). We can continue our Q&A.

Customer: replied 6 months ago.
No
Expert:  Damien Bosco replied 6 months ago.

So, you are saying that Freedom Mortgage and/or Statebridge are not listed as creditors in your bankruptcy?

Customer: replied 6 months ago.
We just transferred to Statebridge from Freedom Mortgage (who was listed as a creditor). Yes we are represented by an attorney. Freedom Mortgage was listed. But since we were transferred the attorneys were notified and said we were covered.
Customer: replied 6 months ago.
The VA said our Chapter 13 is still in place.
Customer: replied 6 months ago.
I want to know tonight if I should sign the disclosure stating that I agree that Statebridge can continue collection activities including foreclosure proceedings while reviewing for a modification?
Expert:  Damien Bosco replied 6 months ago.

If a debtor is Chapter 13, the debtor should be hesitate to agree to any workout or modification without first confirming that such workout is part of or does not hinder a the workout through the Bankruptcy court. We can discuss more if you would like to do so.

Customer: replied 6 months ago.
If I disagree, does that nullify everything else in the disclosure about everything that I completed is true to the best of my knowledge?
Expert:  Damien Bosco replied 6 months ago.

Sometimes debtors in a bankruptcy can get into more problems attempting to work out something outside the bankruptcy proceeding. If someone is in bankruptcy, any agreements should be worked out within the procedure if possible.

Customer: replied 6 months ago.
The bankruptcy attorney said they don't get involved until after the modification is approved. Then it has to be approved by the trustee.
Expert:  Damien Bosco replied 6 months ago.

The modification is understandable to entered into; however agreeing to the collection activity to continue is questionable. That is the best we can tell you from this site.

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