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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Real Estate Law
Satisfied Customers: 17888
Experience:  B.A.; M.B.A.; J.D.
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I have a mortgage with Ocwen. Back in 2014, they issued a

Customer Question

I have a SAM mortgage with Ocwen. Back in 2014, they issued a 1099C with Code I in Box 6 to reflect the waived balance on my mortgage. I sold my house and requested a payoff, they are now adding that balance back into the mortgage balance saying I owe it because I defaulted due to mortgage payment being late over 90 days and the balance originally waived is now owed by me at closing. How can they collect after it was discharged.
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: pennsylvania
JA: Has any paperwork been filed?
Customer: what type of paperwork?
JA: Anything else you want the lawyer to know before I connect you?
Customer: No my mortgage is current.
Submitted: 18 days ago.
Category: Real Estate Law
Expert:  Phillips Esq. replied 18 days ago.

Hello: This isCustomer Welcome to JustAnswer! I am reviewing your post, and I will post my response very shortly. Thank you for your patience.

Expert:  Phillips Esq. replied 18 days ago.

I do not know how.

They really cannot do this after issuing the 1099-C, which is a cancellation of debt. Also, this cancelled debt was reported to IRS as income to you. The lender has already taken a loss for the loan. So, going back now to try recoup the loss after it has not been reported to IRS is quite illegal, an unfair and deceptive act and practice.

You should report the lender to your Attorney General's office and Consumer Financial Protection Bureau.

Goodluck with your case,

Customer: replied 18 days ago.
What type of an attorney would I hire to handle this?
Expert:  Phillips Esq. replied 18 days ago.

Correction for my typos:

The lender has already taken a loss for the loan. So, going back now to try to recoup the loss after it has been reported to IRS is quite illegal, an unfair and deceptive act and practice.

Expert:  Phillips Esq. replied 18 days ago.

What type of an attorney would I hire to handle this?

Response: You would need the assistance of a consumer Attorney. Most consumer Attorneys would take a case on contingent fee basis. This means that the Attorneys may not charge upfront for their fees and would only get paid if they win the cases for the consumers. Even then most Courts award Attorney fees to prevailing consumers. So, you may not have to pay out of pocket to obtain a consumer Attorney to assist you with the case.

You can use the following sites to find local consumer Attorneys:

Consumeradvocates.org

justia.com

lawyers.com

Best wishes,

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