I sent Green Tree a letter telling them that they are mistaken, and that according to my qualified Real Estate Finance Attorneys, I do not, under California law, owe them $58,636 because the first and the 2nd (a HELOC) were purchase money debt. After a difficult series of FAX hurdles, I started calling them every day until I finally was able to get my letter “uploaded to their system.” The team at Green Tree reviewed my information and I was told today that as of tomorrow morning, they will send a letter granting me a full release.
Serveral months after my short sale in California, GreenTree has started collection calls again. They’ve called three times in the last hour. I talked to them the first time. They say that they will continue to attempt to collect on my HELOC unless my attorney to sends them a cease and desist letter. Such a letter, I read elsewhere, is certain to lead to a lawsuit. Looks like I’ll have to take this to court to verify that my attorney is correct about the HELOC being non-recourse purchase money debt.
I want to make sure that when I win GreenTree pays all the court costs and for my lost time and missed work. And, if they break any CA collection rules, they can also pay for damages. (See http://ag.ca.gov/consumers/general/collection_agencies10.php ). Summary from rottentomatoes:
Debt collection rules
Collectors can only call 8am to 9 p.m., in your time zone.
They cannot harass by calling repeatedly.
Collectors cannot use obscene, profane or abusive language.
They cannot threaten violence for failure to pay.
Collectors cannot call you at work if they know your employer does not allow it.
You have a right to dispute the debt within 30 days of written notification.
Debt collection is regulated by the U.S. Federal Trade Commission, which forbids harassing consumers. Companies can be fined $16,000 per incident.