Why would my mortgage be transferred to a mortgage serving company in the middle of a loan modification proce?

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Applied for a loan modification and/or Special Forbearance due to health issues and loss of income because of having to repossess property I had sold on installment plan. Bank asked for more information re:copies of rental property leases etc., mailed that today. Got letter in mail this afternoon transferring my loan to loan servicing company. Where does that leave me? Do I have to pay past due payments now or will they immediately foreclose on me?
I have more than $ 250,000 equity in this home,at least I did until the Gulf Oil Spill. This house is only 300 yds off beach and since I do not occupy home I’m eligible for no kind of help, even though I’ve made payments for 14 years and most of my retirement is tied up in this piece of property. I would gladly sell if I could, but surrounding properties are for sale now on market more than 2 years. No buyers out there…..banks took bailout money and sit on it. Unfortunately my loan is owned by the bank and I had been working on this modification for 3 months already. I have been told “can’t find it, we’re working on it, be patient, it’s all in the system, need further info and week later transfered to a new mortgage servicing outfit. Just very frustrated!
I have more than $ 250,000 equity in this home,at least I did until the Gulf Oil Spill. This house is only 300 yds off beach and since I do not occupy home I’m eligible for no kind of help, even though I’ve made payments for 14 years and most of my retirement is tied up in this piece of property. I would gladly sell if I could, but surrounding properties are for sale now on market more than 2 years. No buyers out there…..banks took bailout money and sit on it. Unfortunately my loan is owned by the bank and I had been working on this modification for 3 months already. I have been told “can’t find it, we’re working on it, be patient, it’s all in the system, need further info and week later transfered to a new mortgage servicing outfit. Just very frustrated!

3 Comments
  1. Reply
    TheMom
    April 29, 2011 at 11:34 pm

    It sounds like they are moving to foreclose.

  2. Reply
    Expert Realtor
    April 29, 2011 at 11:54 pm

    Because the original lender had no intentions of approving your modification and sold it due to late payments.

    Perfectly legal.

  3. Reply
    Meme
    April 30, 2011 at 12:28 am

    What people fail to understand is that the bank such as bank of america, wells fargo, mortgage or whomever the lender is, chances are that lender does not own the loan they have servicing on the loan whomever the investor is owns the loan such as freddie mac, fannie mae, FNMA(fha or va) or a small private investor I work for a major lender and let me tell you that this situation does happen but its not the lenders fault they only have a servicing agreement on the loan with the investor so the investor probably had a release date chosen to transfer the servicing of your loan before you even applied for hardship assistance. Yes it is a chance that since it is with a new loan servicer now that you could go into foreclosure if the past due payments are not paid. I know it’s a pain in the neck but you need to call the new servicer and apply for hardship assistance with them and try to do a loan modification yes you have to start the process all over again and I know that’s not what you want to do but it’s the only way to save your home from being foreclosed on unless you can pay the past due amount. Since its with the same investor not servicer but investor the new servicer will have the same guidelines for modifications so if you were able to get one before you should be able to get one again. Good Luck.

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