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Can my mortgage company charge off my mortgage and then sell it to another lender?

Can my mortgage company charge off my mortgage and then sell it to another lender?

I purchased my home in 2002, started having trouble with my mortgage late 2003, from early 2004 until 2008 I had been in multiple "loan motification/repayment" plans to prevent foreclosure that the lender kept threatening. In 2008 I decided I would not re-sign any more payment plans and just send as much as I could each month, the lender was accecpting these payments and early August 2008 they sent me a notice I was one payment behind and one payment due plus late fees, drive by property inspection fees and anything else they could add on. By the end of August I received a letter offering me a payoff of my balance for a 3rd of what I owed, unfortunately my credit was already so messed up I couldn't even get $11000 to pay off my loan, when I called to ask about this they told me my loan was being charged off. In early 2009 I received a letter that my loan had been transferred to another company who told me if I wanted to keep the property and continue to live there, I could sign a contract/mortgage with them to keep it. In that paperwork there was a deed in lieu of foreclosure that I had no ideal what it was, I was simply told that it was part of the package and that I had to sign it in order for the loan to be processed, this new lender has since went out of business, but before doing so, they filed the deed in lieu of foreclosure at the county courthouse and included some of my surrounding property that should not have been included, I am completely stressed over this, is there anything I can do? I should also mention that my previous mortgage holder filed a charge off on my credit report with a zero balance that is scheduled to be removed in 2013 and both companies (previous and current) are both under lawsuits, previous lender is under class action suit that I did not know about until recently and the current, the one that is no longer in business is under investigation by the SEC for fraud.


bolessd's picture
bolessd
19-01-2012

3 Answers
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1
If you have signed the deed in lieu of foreclosure, then the lender can simply sell off the property and recover as much debts as possible. If you have been mis-leaded into signing the documents, then you can file a lawsuit against them and try to save your property.

smith.sussane | Asked on 2012-01-19


1
I've searched through all of my original documents from my original mortgage holder and can't find anything that says "deed in lieu of foreclosure", however, the lender that is now under investigation for fraud, when I signed a contract with them, I did sign the deed in lieu of, I asked what it was and they told me it was just part of the contract and that if i wanted to keep my house and continue to live in it I had to sign the paper to process the contract.  So do you think I should contact an attorney?

Anonymous | Asked on 2012-01-21


1
Yes, you should contact an attorney as the lender has misguided you regarding the process of deed in lieu of foreclosure. You can take legal actions against the lender.

jerry | Asked on 2012-01-24

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