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cahoca

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Ocwen Loan old and growing interest Should I negotiate payoff
I have an old l2nd oan that is 10-15 years initially with GMAC I believe. We went through bankruptcy 7 years ago and did not include the first or second mortgage in it and continued to make payments on both. GMAC went bankrupt 3-4 years ago? and we did not receive any communication a new company and did not know who to pay for almost a year. After that we learned of the company who we owed but before we could pay them they sold the loan or went out of business, I'm not sure which. Another long period went by of close to a year and we waited to be contacted by whatever comany who it was sold to. We finally received communication and a statement of what we owed from Ocwen Loan. Problem is, it had a huge amount of interest included now for the period we didn't know whom to pay and the loan was being sold from company to company. At this point I am not sure what to do to settle this. I am in Illinois. At one point they called and threatened and said they put a lien on my home. Everything I can find through our county records does not show any lien on the property however. The unpaid loan also does not show on my credit history anywhere also. Is there a time limit that this debt will expire and "go away" Should I try and negotiate and if so, how do I go about it without losing my shirt.

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First thing is get copies of all three credit reports from annualcreditreport.com and look them over very thoroughly to find the information on the loan.  There should be something about the date it was last paid and this is a very important date.  Do a search on "Statute of Limitations on Collections" and find out what it is for your state. These you need to keep in mind.  Then send this collector a letter (which you WILL keep a copy of) telling them that you do not recognize their authority to demand collection of this debt and will not send any payment until after you receive proper validation of the debt within 30 days of the date they get the letter.  Send this letter via certified, return receipt requested mail.  You will receive a green postcard back and that starts the clock ticking. No proper validation received in 30 days?  No payments made, period!  If you do receive some type of documentation they claim as validation, you might want to tell us about it so you can know if it is valid or not.  I did a validation demand letter on a particular collection agency years ago and they shut up real quick since they couldn't validate.

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I've dealt with Ocwen and they're a nightmare. I know from personal experience they love to tack on fees.  First of all,  have them send you copies of all paperwork, to be sure they aquired the debt and when. Have them send proof of mailed documents. You didn't hear from them and suddenly they show up out of the blue. If the debt does show up on your credit, it may stay on there for ten years as mine did. I would not negotiate it, at least at this point. I think they're blowing hot air. 

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