Past due lawyer fees

[Bill Hargrove]

Hello,

I live in New York State and back in 2012-13 I had gone through the foreclosure process but was able to pay back up and currently reside at the same residence. After paying $11,540 and four years I assumed I was in the clear. When looking into a home improvement loan through the same bank, not three days later I received a hardship request from the bank to pay $6,342 in fees from the foreclosure, four years later.

Now, I must say, that I did receive the occasional late notice  (15 Day) after getting out of foreclosure which would say I owed $6k or $7k. I would call and ask and they wouldn't know how or what it was and it would be removed, and be gone for sometime. Some of the 15 day notices would have it and some would not, from 2013-now.

My main complaint is that I never received a bill from the bank about the lawyer fees? Also, since reviewing all of my records and the banks records I have found, what I consider, major discrepancies and keying errors on their part.

What are my rights and what do I do? They have never sent this sum to collections and has apparently just been sitting there not being pursued!?

Today they did send me a copy of the bill the lawyer sent the bank, but I'm still waiting on the copy the bank originally mailed me to be forwarded to me.

Any suggestions please!

[Account Closed]

This one is worth the $300 attorney consultation that you are going to have to do to get it straightened out.

Basically, the bank has to prove that you owe the debt. Under the Fair Debt Collections Act, they have to follow certain rules. You can and will get a print out of ALL transactions on your account from the bank. Call and request the Account History Report. Once, you have that, read down the Transactions and cross reference them with your payments.

There are normal attorney fees in a foreclosure. Usually, you have to pay those at the time that you reinstate the loan coming out of a foreclosure action along with the missed payments and late fees. Legal fees should be a separate line item on the reinstatement  paperwork.

If the bank accepted the total reinstatement amount, it is a bookkeeping error and just sloppy paperwork on their side. If they accepted the missed payments and late fees but the legal fees were not included in that amount, it is sloppy paperwork on their side. NY is a foreclosure state so the laws are somewhat different than the Deed of Trust (DOT) states I deal in like AZ TX CA and WA. Your attorney can sort out the rest. Eventually, Whatever you do, get a letter from the bank on their letter head with a date on it and signed that states that the loan is current and in good standing.