Re: can you buy the entire note from CA?

Posted by info (68.106.21.79) on October 10, 2003 at 02:42:49:

In Reply to: can you buy the entire note from CA? posted by gypsy in TX on October 10, 2003 at 01:59:15:

This is fairly complicated legal stuff, but the answer is no you can’t buy the note from the debt buyer, since they didn’t actually “buy the note” from the OC. All they purchase is the right to collect on the note. This leaves the OC with a legitimate tax write off. If the OC sold “the note” to the debt buyer, the OC would not be able to take the tax write off on it. OC’s sell the rights to collect at a deep discount. So the debt buyer really doesn’t “own” the note. They are assigned the right to collect on it. Which is why debt buyers can’t issue 1099s. The OC kept that for themselves. So whatever “settlement” you make, unless it is with the OC with a 1099c, just means that the debt buyer assigns the rights to collect the remainder to another debt buyer who starts the process over again.

This post was just to clarify that debt buyers don’t “buy the note” They purchase the rights to collect, with the tax write off remaining with the OC. Debt buyers are legally incapable of forgiving any debt.

Others may give you more information regarding your specific situation with mortgage lenders.

Follow Ups:

Post a Followup