Posted on: 21st Sep, 2008 12:51 pm
Hello,
I'm looking to see if anyone can offer some advice?
I have a first and a second home loan with Chase. I fell into default in May on both loans and was issued the papers for auction in October. During this time I have been communication with Chase and working with their loss mitigiation dept. I have followed their instructions and provided all the paper work to process my modification. I was told that the second loan would probably be forgiven, or be kept in house and be worked in as part of the work out. Just recently I recieved a letter stating that another firm would be servicing my second loan and will be collecting payments for that starting Sept 25th, 2008. The header on the letter says Notice of assigment, sale or transfer of servicing rights.
My question is: if I get a modification work out on my first with Chase and that is the max I can pay for right now, and I can't pay anything to this new servicer, what will happen? Can this new servicer come in and foreclose on my property? Do I have to work something out with Chase to see if my second can be worked into my modification and to stay with them. I'm just needing to know what happens now that my second is somewhere else, what power does this new firm, which by the way looks like a recovery company vs. a loan or lien holder company.
Can I wait until my financial situation gets better before I start paying this new servicer or recovery firm which by the way is called Dyck-O'neal Inc.
Any feedback is appreciated.
I'm looking to see if anyone can offer some advice?
I have a first and a second home loan with Chase. I fell into default in May on both loans and was issued the papers for auction in October. During this time I have been communication with Chase and working with their loss mitigiation dept. I have followed their instructions and provided all the paper work to process my modification. I was told that the second loan would probably be forgiven, or be kept in house and be worked in as part of the work out. Just recently I recieved a letter stating that another firm would be servicing my second loan and will be collecting payments for that starting Sept 25th, 2008. The header on the letter says Notice of assigment, sale or transfer of servicing rights.
My question is: if I get a modification work out on my first with Chase and that is the max I can pay for right now, and I can't pay anything to this new servicer, what will happen? Can this new servicer come in and foreclose on my property? Do I have to work something out with Chase to see if my second can be worked into my modification and to stay with them. I'm just needing to know what happens now that my second is somewhere else, what power does this new firm, which by the way looks like a recovery company vs. a loan or lien holder company.
Can I wait until my financial situation gets better before I start paying this new servicer or recovery firm which by the way is called Dyck-O'neal Inc.
Any feedback is appreciated.
Hi tapp!
Welcome to MortgageFit Forums!
I can well understand the situation that you are facing. Hope you recover from the situation soon. Coming to your question, if you simply do not pay to your new servicer, it can let the mortgage go for a foreclosure. However, if the new servicer does so, it will have to pay the mortgage amount to the first lender. This is something the second lender will avoid doing. It may come up with a plan through which you will be able to pay back your mortgage.
Hope this will help you.
Thanks,
Jerry
Welcome to MortgageFit Forums!
I can well understand the situation that you are facing. Hope you recover from the situation soon. Coming to your question, if you simply do not pay to your new servicer, it can let the mortgage go for a foreclosure. However, if the new servicer does so, it will have to pay the mortgage amount to the first lender. This is something the second lender will avoid doing. It may come up with a plan through which you will be able to pay back your mortgage.
Hope this will help you.
Thanks,
Jerry
The new servicer will not let you go if you do not pay him. He will let your property go for a foreclosure.
Thanks for the feedback! I would like to add that I called Chase about my second be reassigned. I wanted to verify if Chase sold all rights to this new firm, or if they simply just assigned collection efforts and charged off the second from their books. Chase still holds the lien for the second and charged it off. So my real question here is? If the modification goes through and I put down the required down payment to modify my first, and don't pay on the second I'm wondering if then Chase will then a few months later come in and foreclose on my second now that they got some upfront cash from the modification.
hi tapp!
as far as i can understand from your question, you second loan has been charged off to another lender. now i don't think chase can foreclose your property. yes, if don't pay the second mortgage, the new servicer can foreclose your property.
thanks,
jerry
as far as i can understand from your question, you second loan has been charged off to another lender. now i don't think chase can foreclose your property. yes, if don't pay the second mortgage, the new servicer can foreclose your property.
thanks,
jerry
Jerry- thanks for the feedback, but again and this is the confusing part. Chase has charged off the 2nd loan, but they are still the lien holder. They are utilizing a collection company to proceed with collection efforts for the charged off second. So Chase hasn't sold it to another lender, because they still hold all servicing rights to the lien, I checked with Chase and the new servicer who is simply going to try and collect a payment for Chase on the 2nd.
if you have already gotten the notice of transfer, then your loan has already been sold and yes the new lender can foreclose.
Call the new lender immediately.
Call the new lender immediately.
elnora thanks for your 2 cents, but as I stated before just because it has been reassigned it doesn't mean that it was sold. Chase still owns the lien and all service rights, that have not sold it to this new company.
Hi tapp!
I think, though Chase still owns liens, it is the new collection agency that will collect the debt from you. You can speak to Chase and the new collection agency personally.
Thanks,
Jerry
I think, though Chase still owns liens, it is the new collection agency that will collect the debt from you. You can speak to Chase and the new collection agency personally.
Thanks,
Jerry
Your second no longer exsists with Chase. You were told wrong information by a Chase representative regarding the forgiveness of the 2nd debt. Your best bet is to file a Notice of Lis Pendency. Make sure that Chase does not add to your principal additional money to modify your agreement on your 1st.
Thanks for the follow up Sandra. I would file a Lis Pendency if I knew what it was and what it exactly did? I still haven't to this day recieved a final answer on who services what for my second, all I know is that Chase has charged off the 2nd lien I had with them and now a collection company wants to negotiate payments for that loan.
Hi tapp
You will have to contact Chase and ask them who your collection agency is. Once you come to know about the collection agency, you can contact them and pay off the debts.
Lis Pendens refers to a pending lawsuit. It is a written notice which states that a lawsuit has been filed in regards to a real estate, involving either the title to the property or a ownership interest in it. The notice is filed at the county land records office.
Thanks.
You will have to contact Chase and ask them who your collection agency is. Once you come to know about the collection agency, you can contact them and pay off the debts.
Lis Pendens refers to a pending lawsuit. It is a written notice which states that a lawsuit has been filed in regards to a real estate, involving either the title to the property or a ownership interest in it. The notice is filed at the county land records office.
Thanks.