Mortgage Servicer refuses to speak with Debtor after bankruptcy!

10 Aug Mortgage Servicer refuses to speak with Debtor after bankruptcy!

Recently, a number of my clients have beencomplaining that their mortgage servicer won’t speak with them after they received their bankruptcy discharge. What is going on? You would think the mortgage companieswant to get paid – especially considering the number of foreclosures these days. I am told the servicers are of the opinionthat their debt was discharged (and the consumer did not reaffirm the mortgage debt), therefore, they would be violating the Discharge Injunction if they spoke with the debtor.

It is my personal opinion the servicers are just trying to stick it to the consumer! Answering a debtor’s questions abouthis mortgage loan is not a violation of the Discharge Injunction. After all, if the consumer/debtor wants to keep his home after receiving a Chapter 7 Discharge, he must continue making the payments or else face foreclosure. Not that this will help, but if you are a Debtor and having this problem, please contact your senator and/or representative and let them know you are having this problem. Maybe it will prompt some new legislation.

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Jay S. Fleischman is a bankruptcy lawyer with offices in Los Angeles and New York. He can often be found on Google+ and Twitter, where he shares information about consumer protection issues and personal finance.
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