May 19, 2015
A reader asks, “Suntrust Mortgage foreclosed on me in 2010. I had asked for a loan modification and they closed anyway. I had an equity line and I just found out that was placed on my credit report. I found out that my home sold for more than the 1st loan but they never paid the 2nd line of credit, both being with suntrust. when I call suntrust, all they say is any information given will be used to collect a debt. I do not owe that amount on my credit report and they will not do anything about it.”
“I am one of the 2,200 in north Carolina that was foreclosed on improperly. I will be retiring from a local government office soon and cannot get a loan due to this. I have written the state attorney generals office. any other suggestions?”
This is a type of situation that we’ve gotten several reader questions about lately. The specifics of the reader situation in each case varies greatly, but the answer is the same. Some problems are best handled by getting a lawyer’s advice on how to proceed. Is a legal remedy necessary in this particular case?
It might be–depending on a variety of factors including state law. Additionally, borrowers may be able to dispute certain types of credit information on their credit reports in the meantime (while the issue is being contested) but the borrower will need to contact the credit agencies directly and provide the facts. The credit agencies will instruct the borrower on how to proceed with such a dispute.
Borrowers who need legal help with home loans or real estate issues should seek out legal counsel with experience in these areas—it’s best to comparison shop for a lawyer in much the same way you compare lenders, except in this case you’re not just comparing rates and price structures, but also experience levels, successful cases, etc.
None of the above should be considered legal advice. We are simply pointing out that sometimes there is no substitute for a good lawyer.
Do you have a question about FHA loans? Ask us in the comments section.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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