RECENT QUESTIONS

If you are applying for a credit card personally, then a SSN would be appropriate.  If you are applying for a business card,  then the bank should be asking you for a Tax ID No. (TIN).  It’s common that lenders will consider extending credit only if the obligee (that’s you) would guaranty the debt.  Therefore, they need your SSN.

Simply stated. No. The process can seem overwhelming and requires tenacity and patience.

Call them up, show them you are unemployed, fill out a personal financial statement and try to get a delayed monthly payment plan, or request an installment payment plan through the court — a motion for installment payments. Otherwise you will have a judgment against you, and the creditor may or may not aggressively pursue post judgment collection actions. This will depend on the alleged amount owed.

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ALL QUESTIONS

These are recent answers for legal inquiries made to Attorney David Soble. This information is for educational purposes and should not be construed as providing legal advice. No attorney /client relationship is created.

David’s Answer

Generally, you can always propose to settle a debt for less than the stated balance. But collection agencies represent the creditor and are not a debtor’s “friend”. Several variables may help you negotiate a lesser amount than owed. Time. The older the debt, the less likely it is for a collector to obtain the full amount. Need. If you let the collector know that you ‘need’ to pay off the debt in order to secure a loan, or in your case, a license, the less likely they will compromise. Finally, make sure the debt is valid, and that it isn’t so old that the collector can’t pursue a legal action against you. Seek competent counsel if you continue to have problems.

I’m inquiring (doing some of the leg work) for a man whose home was foreclosed upon in November 2011, in Kent Co., Michigan, by the mortgage co (won’t list that name here). He was in arrears due to an accident/loss of work.

That he was in arrears is not in dispute. The issue is that he believes that proper procedure was NOT followed (proper notice, length of time, etc…), resulting in the foreclosure.

Obviously, he has no way of getting the house back. He understands that – that’s not his desire.

He wants to potentially pursue any OTHER legal remedies against the mortgage company for their failures.

So, he wants to know if any statute of limitations has passed. If not, I’d like to get the name and number of an attorney with whom he could consult further on this matter.

David’s Answer

Generally, challenging the foreclosure should really be brought during the redemption period. Courts have ruled that after the homeowner, does not have standing (right to bring an action) to bring an action after the redemption period has expired because there is no longer a mortgage on the property so there is no further interest. Federal law gives you some remedies through the federal consumer protection act/bureau. At the very least, 2 years from the date of the foreclosure sale would seem the appropriate statute of limitations unless there was a fraud committed.

Went to buy a new car, they ask me if there was a lien on my car i said no they checked my credit and said there wasn’t, but the loan company that has the title says it is how do i find out?

David’s Answer

In general, when your lender has a lien on the car title, they are named as “lien holder” or “secured party” on the title. If you have the original document of title in hand, you will see this plainly on the title. Some lenders will actually hold the original title and you retain a copy. They will issue you a clear original title when they receive their loan proceeds paid in full. (A credit check is insufficient to determine lien positions.)

It sounded like a legit situation. Then after sending them the initial “fee”, they needed more and more. Then my bank card wouldn’t accept the alleged deposit due to it being larger than the daily limit. (confirmed on my bank’s website) Finally it was supposed to be just one more amount to get the money wired.

David’s Answer

Notify your bank immediately and file a police report. I would also ad that if any personal information was compromised, (such as SSN) then report a Fraud Alert with the credit reporting agencies such as Trans Union.

Makers, endorsers and sureties waive demand of payment, notice of non-payment, protest and notice. Sureties, endorsers and guarantors agree to all of the provisions of this note, and consent that the time or times of payment of all or any part hereof may be extended after maturity, from time to time, without notice.

David’s Answer

Pretty strong language. Basically whoever is signing as a guarantor (meaning, as a co-signor, you will pay in the event that the borrower does not pay) waives any right to say they were not notified of the borrower’s default. That the lender does not have to do anything to inform the guarantor that a payment is late, or provisions of a contract have not been satisfied by the borrower. Pretty restrictive and the co-signor should be concerned. Commercial loan agreements and financial documents are written for the lender and a majority of the language contained therein is dedicated to what rights the lender has against the borrower in the event of default.

David’s Answer

If you are not a co-signer or authorized user on the account, you shouldn’t be using it —it’s theft.

They are claiming the insurance company (who is writing the check) requires this before they cut the check.

David’s Answer

In general, the check should be made available to you at the time you are endorsing the release. It sounds as if you don’t have an attorney to review and coordinate the release. Between attorneys, if such representation were made (check issued upon receipt of signed release) there would be very little cause for concern.

My house foreclosed last year and I owe $30k deficiency. I want to negotiate and settle. Should I settle for less with the creditor or wait until I get served?

David’s Answer

It’s like playing a game of chess or cards. Why would you ever negotiate against yourself? Until you actually get served with a notice of the deficiency, nothing further can happen to you except for having a mark against your credit or possibly receiving a 1099-C (Debt forgiveness depends on several variables and can be taxed.) So even if you have good intentions to settle your debt, you may actually be hurting your finances by reaching out to the creditor first. I would recommend waiting until you receive notice of an action. You may even receive a collection letter before an action is filed. Chances are very good your creditor will still want to discuss a settlement. In any event, contact an attorney experienced with negotiating bank debt.

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