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Banks Forgive Previously Discharged Home Loan Debts

Written by Bruce Feinstein, Esq. on . Posted in Bankruptcy Blog

What have major banks been doing for borrowers since the mortgage crisis?

Thousands of Americans with home loans recently received notices in the mail from their banks, saying things like, “We are canceling the remaining amount you owe Chase!” and “You are approved for a full principal forgiveness of your Home Equity Account.” That all sounds well and good, but there is a problem: many of these individuals don’t owe the money anymore. They filed for bankruptcy and had that same debt wiped out, oftentimes several years ago.

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