How does this work if one bank starts a foreclosure then sells to another bank before foreclosure is complete?


bank
kelly2sxy asked:


I have a mortgage with one bank and could not pay so the bank started foreclosure proceedings. The foreclosure is not completed yet so does the new bank have to start all over and file all over again?

This entry was posted on Monday, January 11th, 2010 at 12:00 am and is filed under Renting & Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Responses to “How does this work if one bank starts a foreclosure then sells to another bank before foreclosure is complete?”

  1. Sally Says:
    January 14th, 2010 at 2:10 am

    Nope they just continue with the proceedings. Sally

  2. Michael J. McCulley, Esq. Says:
    January 16th, 2010 at 1:58 pm

    Generally the new bank would “stand in the shoes” of the original bank. You should consider defending the foreclosure action or filing for bankruptcy protection to save your house. You are welcome to contact me for further details Michael J. McCulley, Esq.

  3. bandyemmie Says:
    January 19th, 2010 at 8:40 am

    This is what is called a service transfer and this happens all the time.
    Depending on the servicer, Home Loan Servicing, Select Portfolio Servicing, Wells Fargo and Countrywide. Those are some of the big ones. Depending on how far the Foreclosure is in the process they will pick up where the prior servicer left off.

    In other cases they may have the file closed and billed, so the new servicer can do a full audit and try to do some loss mitigation workout’s with the borrower to try and get them performing again, and get the person paying their mortgage again. If that fails then they will refer the file out to an attorney for foreclosure.
    Again it all depends on where the loan is at in the foreclosure and what the file looks like upon transfer.
    Now with all the HAMP letters going out from the current administrations there is a lot more loss mitigation work being done to get people to pay on their mortgages again. bandyemmie

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