Green Tree Implicated in Harassment Scheme

By Michael Fuller, Underdog Lawyer ®

An Oregon homeowner alleges Green Tree repeatedly harasses her with nasty calls, in knowing violation of a court order.

"Wale from Green Tree was the nasty one," says Norma Hunt, 61, of Portland, Oregon.

Hunt's delinquent home loan is served by Green Tree.

Hunt lives in the home with her sister, 59, and roommate, 66. Hunt has diabetes, her sister has congestive heart failure, and her roommate is battling stage four cancer.

"We're all retired," says Hunt.

Contempt of Court

According to a 40-page document filed in federal court earlier this month, Hunt alleges Green Tree won't stop its harassment, despite her pleas to be left alone.

Read Hunt's motion to hold Green Tree in contempt here.

Illegal Threats & Foreclosure

Hunt alleges Green Tree attempts to collect debt discharged in her previous bankruptcy.

Hunt also claims Green Tree illegally threatens negative credit reporting if she doesn't pay.

Bankruptcy Judge Grants Hunt's Motion

Last Thursday, Judge Trish Brown issued an order to show cause why Green Tree shouldn't be held in contempt of her prior discharge order.

Read Judge Brown's order here.

Discharge in Bankruptcy

The discharge injunction prohibits creditors from attempting to hold consumers personally liable for debts included in bankruptcy.

Hunt alleges Green Tree threatens her with continued harassment until its debt is paid in full. She says Green Tree refuses to respond to over ten letters from her attorney.

Read a letter from Hunt's attorney here.

Foreclosure Continues

Around the time Hunt alleges Green Tree began harassing her, court records indicate its attorneys worked to foreclose on her home.

Green Tree refuses to cease its foreclosure prosecution while the contempt matter is resolved, despite Judge Brown's order.

Hunt says, "I tell Green Tree 'I filed bankruptcy' and Green Tree says, 'It doesn't matter, we're debt collectors and that's what we're here to do. The calls won't stop.'"

Green Tree has not yet filed a response in the contempt matter.

[District of Oregon Bankruptcy Case No. 11−30638]

[Multnomah County Case No. 1304-05320]

How to Write a Qualified Written Request Letter

By Michael Fuller, Portland Trial Attorney

Writing a Qualified Written Request (QWR) letter to your mortgage loan servicer is simple.

How QWR Letters Work

Consumers write QWR letters to mortgage servicers to request information about the servicing of first mortgage loans. "Servicing" includes payment schedules, escrow amounts, and interest rates.

The Real Estate Settlement Procedures Act (12 USC § 2601 et seq.) generally requires mortgage loan servicers to let you know they've received your QWR letter within five days. Within 30 days, they must take action on the request. For the next 60 days, you're protected from negative credit reporting. 

QWR letters generally do not cover questions about mortgage fraud, robo-signing, the location of the original inked loan documents, or general requests for information. Read Morequity v. Naeem (N.D. Ill. 2000) for more information.

How to Write a QWR Letter Under RESPA

Here's a sample letter I use:

Send the request to your mortgage loan servicer's customer service address, located on your statement. If you're writing to a National Association bank, you can cc: its address with the Federal Reserve System. For non-bank mortgage loan servicers, you may also cc: the entity's registered agent by searching your state's business registry. 

Sent by Certified Mail on November 29, 2013

Wells Fargo Bank, N.A., c/o CEO John Stumpf, 101 N Phillips Ave, Sioux Falls, SD 57104

Please take action in response to the following RESPA qualified written requests: 

1. I believe my first mortgage account servicing is in error because... Please review the following documents evidencing the servicing error... Please respond with specific information about your investigation of the servicing error, including...

Michael Fuller, SSN, Loan No., Home Address

What if the Mortgage Loan Servicer Doesn't Respond to the QWR?

Consumers are entitled to compensation for damages resulting from RESPA violations.

Actual Damages

Actual damages generally include economic losses like higher interest rates and QWR expenses incurred after a deficient response.

Actual damages may also include emotional harms like stress, anxiety, and frustration.

The November 26, 2013 Marais v. Chase opinion by the Sixth Circuit Court of Appeals clarifies the types of damages available to consumers resulting from RESPA violations. The opinion makes clear consumers should plead damages with as much specificity as possible when drafting a small claim or lawsuit complaint.

Statutory Damages

Courts may award statutory damages of up to $2,000, in addition to actual damages, in cases of patterns or practices of non-compliance with RESPA.

Know Your Enemy

Finally, before you write your QWR letter, read this bank lawyer's letter.

 The letter advises mortgage loan servicers how to avoid liability under RESPA.

The letter will help you identify what information is most likely to trigger your servicer's attention to fix its error.

Oregon Couple Implicates Nationstar Mortgage in Foreclosure Fraud Scheme

By Michael Fuller, Portland Trial Attorney

According to a 25 page complaint filed in federal court on Friday, Nationstar Mortgage illegally threatens to foreclose on an Oregon couple's home, in violation of federal law and a 2012 court order.

The case caption reads Bernet v Nationstar Mortgage LLC, filed on Friday, November 22, 2013.
Read the full complaint here.

Lafayette, Oregon homeowners Carlos and Jody Bernet allege Nationstar harasses them to pay a mortgage debt they haven't owed since 2012.

Court records indicate a federal bankruptcy judge granted the Bernet Family's motion to avoid a second mortgage lien held by Nationstar back in October 2012. The automatic stay in the Bernet Family's bankruptcy case strictly prohibits collection of their second mortgage debt.

In their complaint, the Bernet Family alleges Nationstar unfairly tries to collect on the avoided mortgage, in violation of the 2012 court order.

An exhibit attached to the complaint indicates the Bernet Family attorney tried to resolve the matter in October 2013 by sending a letter to Nationstar's registered agent in Oregon. According to the complaint, Nationstar refuses to respond.

Nationstar has yet to file an answer in the matter. The bankruptcy judge set a pre-trial conference for January 7, 2014.

[United States Bankruptcy Court for the District of Oregon, Adversary Proceeding No. 13-03287-rld]