Consumer complaint received 2015-09-01
Company: 21ST MORTGAGE CORP.
State: MD
Product: Debt collection
Sub-product: Mortgage
Issue: Cont'd attempts collect debt not owed
Sub-issue: Debt was discharged in bankruptcy

Complaint:
Please refer to my previous complaint case numbers : XXXX,XXXXXXXXand XXXXXXXX.I exercised my extended right to rescind my mortgage loan in XXXX based on the truth in lending act and regulation Z. Servicer did not respond within the prescribed 20 days as the act required. Instead, servicer sent me a denial letter almost two months later in XXXX XXXX. Rescinded loan was transferred to another servicer XXXX. A debt validation letter and a copy of the rescission was sent to XXXX. Both were ignored XXXX and they pursued foreclosure. My attorney XXXX XXXX of the XXXX XXXX law firm also sent a QWR and a debt validation letter. They responded with only a copy of the deed and a copy on another document. I then filed a chapter XXXX bankruptcy and listed the rescinded mortgage as unsecured. XXXX and their counsel file a motion to lift stay. My attorney XXXX XXXX filed a counter motion challenging their standing in addition informing the court that the security interest was voided upon my rescission, therefore ther 's no note or deed of trust to foreclose upon. The servicer 's counsel withdrew their motion on the day of the hearing. My bankruptcy was kept open for twenty months before the discharge was released. XXXX filed for its own bankruptcy in XXXX. In XXXX XXXX, the XXXX court of appeals ruled on XXXX, a subsidiary of XXXX, in favor of the homeowners. I immediately sent the ruling to my attorney on the same day. But he did n't do anything with it. In XXXX XXXX, I received a notification from XXXX that they 're the new servicers. I immediately sent a debt validation letter including a copy of my bankruptcy discharge and a copy of the rescission letter through an attorney XXXX XXXX. They ignored the letters, but nevertheless transferred servicing rights to 21 st mortgageable XXXX XXXX. I immediately sent a debt validation letter and a copy of the rescission letter to 21st Mortgage. They too ignored my letters in violation of my FDCPA rights and protection against debt collectors trying to collect expired, void and discharged debts. In XXXX XXXX, XXXX filed for foreclosure on my property even though they responded in XXXX to my letter sent in XXXX, indicating that they no longer have anything to do with my rescinded loan as it 's now with 21st mortgage. I brought this anomaly to my attorney 's attention to no avail. In XXXX XXXX, facing foreclosure XXXX more time, I had to stop the sale with chapter XXXX bankruptcy. The servicer 21st mortgage and their counsel file motion to lift stay and proof of claim which distorted the amount in violation of the truth in lending act. The act clearly stated that all interest accruing ends when the loan is rescinded. The servicer deliberately inflated their proof of claim without any protest from my attorney, as a result my bankruptcy was converted to chapter XXXX. I survived their motion to lift stay because my attorney raised XXXX as the controlling legal authority. After I filed my adversary proceeding, they filed a motion in XXXX XXXX to dismiss, but the judge denied the motion pending the XXXX ruling. However, in these intervening months, they 've approached my attorney for compromise to pay me off. Since I refused the offer they 've been filing motions for dis govern, appraisal etc. My attorney, even though I expected to understand my plight, he 's been asking for a lot of money to continue representing me. I signed a retainer with a 30 % contingency but the past months were very challenging losing my mother in law and pay for her funeral in addition to dropping my XXXX off in XXXX, Wisconsin for college when I received an email from my attorney to wire him {$5000.00} from Wisconsin or he 'll withdraw from the case. He did withdrew even after I pleaded with him to wait fo my return

Company response to consumer: Closed with explanation