Question on 2nd position npn in CA -- can I contact borrower?

[Bob Malecki]

Hi All,

I just purchased a nonperforming note in 2nd position on a nice home in Los Angeles. The first is performing and listed with Chase. There is equity in the property even with both the first and my second. The borrower filed BK 7 in 2009 and all debts were discharged.

My loan servicer says that since the borrower has a discharged BK7, they are not allowed to contact the borrower per the new Dodd-Frank CFPB laws. Is this true? It seems that my only option is to have an attorney send a letter of intent to foreclose. Does anyone have any advice on other tactics to get the borrowers attention to negotiate a payoff?

Thanks

Bob

[Account Closed]

Originally posted by @Bob Malecki:

Thanks for your input and wisdom Dion et.al. This confirms what my servicer has told me and I will have the FC attorney issue a LOI to foreclose to get the borrower's attention and see if they will play ball.

I'll update this thread as progress is made so others can get an idea of what is involved.

Bob

Honestly, I think a letter of intent and using an attorney is a waste of time. A Notice of Default is intent to foreclose and IMO foreclosing trustee services are in a better position to do it right.