Today my husband and I filed for Chapter 13 Bankruptcy for the second time in four years because Homeq Servicing Corporation, also known as "The Money Store", refuses to give up their "quest" for $6,779.00 they are not owed.
Our story began in the late 1990s when we entered into a forbearance agreement with "The Money Store" to pay off mortgage arrears which occurred when my husband became disabled and we temporarily lost our income. Over the course of three years we paid our regular monthly payment and additional money to make up the arrears. We made these payments on time, by cashier's check, eery month for three years, exactly as we were instructed. Because our loan had a floating interest rate, sometimes our payment was as much as $1,650.00 per month, but we paid it. At the end of the three year period, we were to be reinstated on a regular monthly payment plan and go on with our lives. If you are reading this report because you are familiar with Homeq/The Money Store, then you know that is not what happened.
At the end of the three year period, The Money Store (which had been purchased by Homeq/Wachovia or whatever name they go by) immediately declared us to be in default, basically saying we had not made the three years in payments we had just made! They submitted page after page of incomprehensible fee schedules and payment reports, ignoring completely that we had satisfied the terms of the forbearance agreement exactly as signed off on by their own agent. They refused to accept monthly payments from us and instituted foreclosure proceedings.
The lawfirm they use to handle their foreclosure proceedings is Morris, Schneider & Prior, LLC, located at 1587 Northeast Expresway, Atlanta, GA 30329. Their telephone number is 770-234-9181 and their fax is 770-234-9192. We tried to contact this lawfirm, sending numerous letters, faxes and documents to show that we had satisfied the debt and were NOT in foreclosure. We never got a phone call or answering letter. We were able attain a temporary injunction, but after a month or so, they instituted foreclosure proceedings again. All of our telephone calls to the Homeq Servicing "call center" resulted in "we see what you are saying, but you are in default.
We cannot tell you why the forbearance agreement did not satisfy the indebtedness". Just that we were in default. Calls to the California office of Homeq were met with disconnected numbers. Calls to the Raleigh office were forwarded to California numbers. Addresses were wrong, people were no longer employed, calls were never returned. The Morris, Schneider law offices were basically one big voice mail hell.
In October we were forced for file a Chapter 13 bankruptcy to save our home. We contested their claim that we still owed them the $6,779.00 (plus or minus). After a two year struggle, our attorney won that claim based on all of our documentation, reducing our arrearage payments to them over the life of the bankruptcy from $16,000 to $10,000 (numbers rounded off for ease). Of course, there wouldn't have been an arrearage to them if they hadn't refused our payments for over half a year.
If this were a fairy tale, we would conclude now with a happy ending, right? But if you are reading this you already know about Homeq because of what they have done to you or someone you know. So you already know there is no happy ending. Our bankruptcy ended in January of this year. We happily began making payments (two weeks early in every case, I might add) and for five months, everything was great.
Suddenly, our worst nightmare - a collection letter from Morris, Schneider, declaring our loan in default. We called them, got an actual person who assured us it was a mistake. Sigh of relief, but too soon. We got a default letter from Homeq's Loss Mitigation Department the next day, and when we called them we were told that the bankruptcy hadn't "taken enough money to satisfy the indebtedness". Explaining to them that they lost the Motion for the additional monies didn't do any good, they were damned well going to get that $6,779.00. We called the lawyers office back and suddenly we were back at square one, in default. Two days later we received the foreclosure notice.
We tried having our bankruptcy attorney contact them, he tried contacting the local attorney who represented them in our bankruptcy. Everyone, including the Bankruptcy Clerk and Trustee's Office is very happy to tell us that "they can't do that", i.E., collect on an amount of money which was discharged during a bankruptcy; however, that is EXACTLY what they are doing and as a consequence of that, we filed another Chapter 13 yesterday, to stop the foreclosure on our property. Another round of battles, another large attorney's fees.
Can Homeq be stopped? On the internet I see so many people crying out for help, they've lost their homes, their credit, everything, to this teflon corporation that seems to be able to do anything they want, without redress. I am looking for an attorney, an agency, a miracle. I want to get these people out of our lives. They have destroyed our credit, are destroying our health and happiness. We have no assurance that at the end of this bankruptcy they will not simply turn around and do the same thing once again. Someone, anyone, HELP!
Linda
Waverly Hall, Georgia
U.S.A.
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