@bstone wrote:
I understand they can provide payment history, but how can they provide a payoff balance if the debt was technically forgiven in BK and you are now merely making voluntary payments?
Seems if another lender tried to refinance the debt it would also be considered the original lender trying to collect on a discharged debt. Unless paying the "balance" (which was discharged technically) is considered voluntary as well.
I hope you file an ethics complaint against this attorney, their personal opinion should never trump a client's wishes, or demands in this case.
Good luck!
BMO Harris has been extremely frrustrating to work with. It used to be Marshall & Isley. After my 01/11 discharge I called them and learned of the reaffirmation agreement they sent that my attorney never told me about they were very sympathetic and resumed auto draft payment & monthly statements. and all was good for a year or so. Then when BMO took them over I almost defaulted on the mortgage. I happened to check my online banking mid month and thought 'Hmm, why do I have so much $$$ in my account?', and realize my mortgage payment hadn't been deducted. I call, rep doesn't know why it wasn't, and promised to deduct it & back date it. Next day I get a call from their BK dept who tells me now that it is BMO Harris they will not deduct payment from my account as that "would be an attempt to collect a discharged debt", I must send it to them. So I overnight them a check. For the next few years I mail them a check with a letter referencing the loan # & date the payment is for because they refuse to send a monthly statement, and not even the year end tax statement of interest paid. They just resumed monthly statements this year, I found out from research that's because of the Consumer Protection law now requires that.
BMO just seems to take a very hard line against those who do not reaffirm. Their claim that they won't refinance because that "would be an attempt to collect a discharged debt" is BS, because by their definition their providing a new lender or anyone a pay off balance would "be an attempt to collect a discharged debt". Some lenders hate that you can keep your property w/o affirmation by just keeping the loan current, and BMO Harris seems to be one of them.
And now, after months of their BK dept assuring me that if I got my BK case reopened they would send me a reaffirmation agreement, their legal department has stepped in and is filing a Motion to Dismiss my Adversary Proceding because they now will not accept a reffirmation agreement. They won't let me speak with anyone in legal, a non-attorney in their BK dept told me that, and when I asked why she first said because the "time to reaffirm has long since passed". I tell her that's not what they've been telling me for months, and ask exactly when is the time limit to reaffirm. She hesitates, and admits the legal dept. said if they agree to reaffirm now it could "create potenital liabilities". I think they reviewed and realize this loan has much more favorable terms then they would offer now - variable rate based on 2 yr. treasury notes, and short term rates are very low, current rate is only 3.5%, been that way for 4+ years. With that low interest & 8 years into the loan, payment is applied almost equally between principal & interest.
Anyway, my hearing at the BK court is scheduled for next tues. I'm filing a Motion for Continuance to delay until I receive their Motion to Dismiss and I can consider my options. .
And I'd love to file a complaint against my BK attorney for getting me into this mess, but he's retired and moved out of state.
Yeah, I found that out when I posted "Stuff happens", but used a little less family friendly word than 'stuff'.
