Mortgage & Servicing Was Sold.
Bank A sold a large pool of mortgages (an investment property of mine being one of the loan) to Bank B, effective 3/1/08.
The assignment agreement was not recorded until 6/8/08, During this time Citi serviced the note and caused me all sort of grief, including a 90-late on a mortgage account, my FICO dropped like 50 point. Other adverse credit action.
Unless there was a separate servicing agreement between 3/1/08 and 6/8/08, did bank B have the right to service the debt, potential in violation of the FDCPA?
I have seen a number of legal challenges of non-recorded assignments and servicing agreements...usually in foreclosure situations.
The challenge usually delays the foreclosure procedure...but I have NEVER seen an assignment overturned in the cases I have researched.
Perhaps you will set a legal precedent if you follow this up.
[addsig]
Were they compliant with RESPA, goodbye letter from old serv. Hello letter with 15 days warning etc. In RESPA letter it should clearly state payments recvd. on or before 3/1/08, all paymt goes to (old servicer) after 3/2/08 all payments go to new svr Z. Any payments recvd by old servicer after this date will be forwarded to new servicer.
1st place to start, date of assignment recorded..... I have seen it be way off. I buy a loan, create assignment, record it( not thru MERS just by hand) get it rejectd from county, the note seller never recorded their assignment, so I have to get back in touch with seller, record their purchase assignment, then resubmit my purchase assignment.
Mike R
There is a 60 day period between the transfer of servicing where the company cannot charge you a late fee - see RESPA Guidelines on the HUD web site. It will also explain how to file complaints with your current servicer and where to write to HUD to file complaints.
Your loan could have been sold to another investor (Bank B) however, the servicing rights could have remained with the current servicer. Just because the loan is sold to another investor does not necessarily preclude that the servicing rights have been sold as well.
The old servicer will continue to collect your payments, however, they are supposed to forward those payments to the new servicing company. But as I mentioned above, you get 60 days of no late payment penalties.
Good luck!