Can discharged debt buyer enforce lien?

[overspent]

Let's say if you bought a big screen TV on credit , filed chapter 7, did not reaffirm, got discharged, and the original credit of that TV instead of taking it back, sold the discharged debt to a junk debt buyer. Does the junk debt buyer has the right to take the TV away?

[tobee43]

it depends on the credit contract you signed at the time of purchase...both best buy and dell do go after their goods and can because of the contract they have their clients sign.

[AngelinaCat]

Let's say if you bought a big screen TV on credit , filed chapter 7, did not reaffirm, got discharged, and the original credit of that TV instead of taking it back, sold the discharged debt to a junk debt buyer. Does the junk debt buyer has the right to take the TV away?

NO. Do NOT let the Junk Debt Buyer bully you. Send a copy of your Discharge Order to the JDB, with a letter informing them that they are breaking the law by trying to collect a discharged debt. The legalese citations will be in your discharge order. Send everything with a courtesy copy to your trustee and judge. Then send the package to the JDB via snail mail, and have it sent certified with return receipt, so someone at the JDB HAS to sign for it. Keep that receipt and copies of everything for your files.

Good wishes to you!

[overspent]

Thanks for replying Cat. The same situation is with my mortgage. Originated by Ameriquest in Feb 2005. I filed BK chapter 7 in Apr 2005, no reaffirmation , got discharged in July 2005. Ameriquest sold loan to Wilshire in August 2005. Wilshire sold to BOfA in Feb 2010. Now BOfA is trying to foreclose on me. I am planning to sue them to stop the scheduled sale based on reason that BOfA bought a discharged loan and has no standing to foreclose. Do I stand a good chance?

[sh9730]

Overspent - Interesting thought! I dont think it works the same with "real" property (as in your mortgage) vs "personal" property as with the Big Screen TV. Im sure Des or some of the attorneys can point to the sections of the code that apply.

[despritfreya]

Ameriquest sold loan to Wilshire. . . Wilshire sold to BOfA . . . BOfA is trying to foreclose on me. I am planning to sue them to stop the scheduled sale based on reason that BOfA bought a discharged loan and has no standing to foreclose.

Do I stand a good chance?

In answer to your questions. . . NO.

I suggest you read Cervantes v. Countrywide Home Loans, Inc. (9th Cir.) and look up the MDL litigation. . . In re MERS Case 2:09-md-02119-JAT - Google both.

"Show me the note" is DEAD - and rightfully so. If you do not pay the mortgage the property will eventually be foreclosed. You do not get to keep the home for free - and I wish people would stop thinking they can - just mind boggling.

Oh, I forgot. . . while your loan was discharged the lien was not. If you do not service the lien (pay the loan) the lender (whoever that is) takes back ITS property.

Des.

[HHM]

sold the discharged debt to a junk debt buyer. Does the junk debt buyer has the right to take the TV away?

Legally, YES

Practically, Not Likely. Liens on consumer goods are rarely enforced. As was suggested, simply send a notice of the discharge and ignore them. It is highly unlikely they would go to the effort to get a writ of replevin to actually repo the item (but they could).

As for the foreclosure, Desp is absolutely right. That doesn't mean you cannot challenge standing, but your basis for challenging the standing (that they bought a discharged debt is entirely without merit). There is a new decision out of the 10th Circuit, Miller vs. Deutsche Bank National Trust that states that a foreclosing lender must have "some proof" that it is in possession of the note and thereby has the right to foreclose, but that is a far cry from requiring them to "produce" the original, signed note. Accept reality, you had a mortgage, you stopped paying, the house is gone.

[mountanddo]

You do not get to keep the home for free - and I wish people would stop thinking they can - just mind boggling.

It used to be mind boggling to me to think you could stay in your house without paying under foreclosure. My now ex-bf quit his job in June and stopped paying the mortgage. His co-worker threw a firecracker into a bathroom he was working in and shut the door. As a result he had some hearing loss. He has a work comp claim pending that hasn't been resolved yet. Instead of going and finding a job basically he's been doing nothing for 8 months - claims he can't work due to the injury. So his house will be taken after the redemption period is over in August and he will have nothing. If he'd had gone and taken any job just to bring in some cash he have money saved up after his house was gone to file BK and have a fresh start..maybe even have a little left for that new start. Yeah, it sucks to have your house foreclosed and sucks more at the length of time that it takes for that to happen but people need to take advantage of that situation when they are in it. If someone told me I didn't have to pay my rent for 1-2 years and then I could leave without conseqences, I'd be in seventh heaven.