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carol batenchuk Asked:

Me and my ex purchased a house in july 1995 for 65000., he moved out in jan 1996 and left me with the house. in dec 2000 i had to move cuz i couldnt afford the house anymore, i gave up the house voluntarily, the bank took it over and sold it for 59000., now ever since then i have a collection agency after me saying i still owe like 23,000. but i still dont understand where the money of 5 years that i paid went to? i figure i paid like 40,000. where did that money go? also they say my opening balance was 73,000 how could it go up? i have a paper from 1998 saying my balance was 63000. I just don understand whats going on. and they got me to send them a financial statement and stat declaration so i did and made them an offer of 2000., they come back saying that i had to options 1-pay the 2000. one lump sum or 2- if i had to make payments i had to pay 4000., i dont know what to do. im a single mother with 4 children. any advice how i can find out what to do, im willing to pay the 2000. but only by payments cuz i dont have money. is bankruptcy a good idea? thats how my ex got his name off there. please let me know asap cuz their calling me and stressing me out threatening to garnish my wages. [selkirk Manitoba]

03/19/2008

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Answer Provided by: Danny S. Kim [03/20/2008]
 

My best guess is that you had what is called a neg-am loan or sometimes called an Option ARM or Pick-A-Pymt adjustable rate mortgage. This type of loan allows you to pay less than the interest-only pymt. The difference is added to the loan balance. Looks like you're in Canada so I can't speak w/ much certainty, but if debt collection practices are anything like here in the States, the industry is riddled w/ scam artists and intimidators hoping to prey on people in debt. Sounds like they are trying to intimidate you into paying. Know you're rights. Checkout Canada's Office of Consumer Affairs website on debt collection http://www.ic.gc.ca/epic/site/oca-bc.nsf/en/h_ca02149e.html and a good site for the U.S. that may give you some good ideas.

 
 
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Answer Provided by: Danny S. Kim [03/20/2008]
 

http://fair-debt-collection.com/