My mortgage company transferred my loan to another company under questionable circumstances. Any advice?

Question

I lost my job in June. First thing I did was contact my mortgage co and came up with an agreement to catch my loan up with my tax refund. However, I just received notice through the mail that my loan has been transferred to another company. In the legal copy, it stated that my current provider should have sent me a Notice Of Warning 15 days before the transfer. That never happened. This is a shock that this has happened. Do I have any legal recourse? They transferred my loan to a mortgage company I have dealt with in the past... and got screwed over by them. I don't want this to happen, again. Any advice or answers would be appreciated!

I will rephrase the details from previous... I KNOW it is typical practice for mortgage companies to buy and sell mortgages. That is not the question, in this case. The question is, since I lost my job on June 1, I have fallen behind in my payments. I reached an agreement with my mortgage co that I would catch up with my tax returns in Feb. 08. Since then, I received a notice that my mortgage has been transferred to another company. In the notice, it states that BY LAW I should have received a warning by my old mortgage company 15 days ago. I have not received such a notice. Because I did not receive this notice required by law, do I have a case? Thank you for all who have answered and who will answer.

Answer 1

You need to talk to an attorney who specializes in real estate law now!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

You could lose your house!!!!!!!!!!!!!!!!!!!!!!!!

You say that you are behind on your payments. That gives the holder of your mortgage the right to file a Notice Of Default.

The net result will be a dramatic increase in your costs and the possible loss of your house. The mortgage holder will add penalties and late fees to the amount of money that you owe to mortgage company.

Have you been able to find a new job?

Unfortunately you may be in a posititon where you will not be able to get the money to make the mortgage payments on your house.

You need someone with a great deal of expertise in the area of real estate law to advise you. You will now start receiving enormous amounts of advice from people who do not know what they are doing and in some cases advice from people who will pretend to be your friend but are really only interested in stealing your house and your equity in your house from you.

Now more than ever, that is why you need an attorney who specializes in real estate law.

The attorney will not only help you make an informed decision of what to do, but also even more importantly your attorney will help you sort out the bad destructive advice that you will receive from people who find out about the problems that you face.

I wish you much success. Right now things probably look rather desperate to you, but with the proper advice from an attorney you will have a much better future.

Answer 2

Case? What case? Lenders can buy and sell loans as much as they want. The terms of the loan can not change. Generally lenders dump loans that are near default. Some lenders are better then others with dealing with collections. If anything, the lender has a case since the income the loan was approved on has decreased. You entered into a contract. It is up to all parties involved to agree to any motifications. Call the new lien holder. The money you would spend on an attny would be better applying to getting the mtg back up.

Answer 3

You might have a case, but you'll need to retain an attorney to enforce your rights.

As to the agreement with the first mortgage company. Did you have a WRITTEN agreement on catching up by Feb 08? If so, that agreement must be honored by the new holder of the mortgage. If it was a verbal agreement, it's worth the paper it's printed on, i.e. it's pretty much unenforceable.

Answer 4

No, you don't.

Mortgages get sold all the time. Likely, when you "got behind" in the mortgage payments, the original mortgagee decided to sell it off to someone who takes higher risks.

There's no such thing as getting a mortgage that can't be sold to someone else. Unless it's through Mom and Dad, or your local bank, with a non-transfer agreement.

Answer 5

A case for WHAT ? Your mortgage loan has been sold to another firm, and that firm will handle mortgages according to their custom. The only thing which does protect you under law is that they cannot report your account as delinquent for the first sixty days after they purchase the contract.

After that, you're on your own. Whether or not your new mortgage owner will agree to the same terms that your old one did is up to the new mortgage holder.

Answer 6

for the most part, any mortgage company has the right to sell their loans to another lender with or without notice as the terms and conditions are normally the same.... find another job in a similar profession and refinance w/ another mortgage company...

Answer 7

Loan Servicing is subject to Real Estate Settlement Procedures Act.

TITLE 12--BANKS AND BANKING

CHAPTER 27--REAL ESTATE SETTLEMENT PROCEDURES

Sec. 2605. Servicing of mortgage loans and administration of escrow accounts

You are entitled to collect for actual loses incurred due to failure to receive notice.

Doesn't sound like you have a "case".


You may want to look at http://www.naca to see if there is some help for the mortgage there.

Answer 8

A case against what? Them selling your loan? The loan should still be according to the contract you signed. I am not sure what "a case" would be as you suffer no loss, in fact no effects at all, from this exchange.

Answer 9

Companies buy and sell motgages all the time. It's called trading paper. As long as the terms of the contract are the same, I see no problem with that.

Answer 10

Do I still owe 5 months in late payments to the new mortgage servicer? I was late before they sold my mortgage?
Thanks