QUESTION
A collection agency is trying to collect on a forgiven mortgage loan.
Asked on Dec 30th, 2011 on Collections - Texas
More details to this question:
A second loan on a foreclosed house was forgiven by the bank holding the note. IRS forms were filed and I claimed on last years return. I now have a collection agency that says they are representing a "guaranty" company and demanding payment for the loan? Is this legal? Sounds like double jeopardy to me. Do I need to contact a lawyer?
1 ANSWER
The Fair Debt Collection Practices Act ("FDCPA") states that a collection agency cannot try to collect a debt that is not owed, and allows for damages if they violate the provisions of the FDCPA. Without knowing exactly what IRS documents you are referring to I cannot say if the collection agency is violating the FDCPA. Assuming the second mortgage was on a personal residence, it would fall under the purview of the FDCPA and you should contact a local FDCPA practitioner for a more thorough analysis.
Answered on Jan 02nd, 2012 at 12:47 PM