Legal Question in Credit and Debt Law in Illinois

A Mortgage Nightmare

My husband and I separated for a brief period. During that time, he contacted our mortgage holder and requested that our loan be turned into a ''balloon'' mortgage with a lower payment. The mortgage company agreed.

Then, we began receiving all sorts of letters from branch offices located all over the country from this same company. Collection letters which listed our original payment as being in arrearages.

An attorney friend of ours has attempted to get the company to correct their records. The branch office who had handled the renogiated loan with my husband did NOT record it in the company's computer however, it is recorded at the county courthouse and we have signed original copies. They have since sold out to another company which appears to have the same problem since they are using the same records.

Our balloon payment on this mortgage is coming due in May, 2002;we need to see about the refinancing. However, due to the negligence of this company and their outright refusal to correct their records, my husband's credit is a total disaster. His report lists the orginal amount of the payment and shows that it is some ''996 days past due''. Would this fall under ''negligence''?

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