Hello...I am so confused. Today I got a letter from CitiMortgage that my $20000 mortgage with them has been paid off. They are the 1st lien holder and this mortgage is owned by Freddie Mac. I also have a 2nd mortgage with USDA Rural Housing who wants to foreclose but hasn't done anything for 8 months. I called CitiMortgage today and they don't have any information on who paid it off. They said it's more like a chargeoff. But they also said it was not sold to anyone either. Does anyone know if USDA might have paid it off just so they can move on with foreclosure. When it gets to that point I probably will file another chapter 13 anyways. I guess I'm just wondering if its possible that USDA would or could pay them off. Or if they even have the ability to do that. This is a government mortgage loan. Thanks everybody.
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I don't have any experience with USDA loans, so I can't comment on that aspect. But, I did get a letter from Citibank during my Chap 13 saying they were forgiving my second mortgage that was being stripped. They made it sound like they were doing me a favor, but I think it was part of the settlement with states and the federal government. They then sent me another letter saying they sent the first in error. Somebody must of realized that the mortgage was being discharged. I have heard of others getting those letters and the liens actually being released, but I don't know if that is still going on.LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent! -
The real question is whether a "Satisfaction of Mortgage" or "Release" was done as well. The mortgage is not over, til it's over.
Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
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Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.Comment
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It just says on the letter that the documents necessary to record the release of lien will be forwarded to the appropriate recorders office and that the payoff is conditional upon the clearing of all funds through the banking system. I do know back in 2012 I was part of the class action suit that awarded my 3700 for them not working with me with a modification. And only 4 months ago I requested a loan modification and then I get this letter...
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