Mortgage sold to LBPS?? After being confirmed on my Ch 13

[freeme0215]

Hello,

Citimotgage "Sold" my mortgage to Lender Buisness Process Services(LBPS). I was in the mist of a loan modification request with Citi...

The letter from LBPS states at the bottom that it is a collection agency!!!! It also states my Loan # with Citi, there is a W-9 form attached...anyone have their mortgage sold to this company?

I was confirmed for my BK on 9-16-2010 and I have been making payments all along...

Thanks
Marlene

[lrprn]

Are you sure that your loan was actually turned over to this company? Some lenders - especially the big ones like Citi - shift loans from filers in Ch 13 over to companies who collect their mortgage payments while your case is active. Is there a chance this might be what's going on?

If not and your loan really was sold to LBPS, as long as your new loan owner doesn't demand more payment that you were paying your old lender every month, or try to collect more than they are entitled to by adding on fees, etc related to the transfer, then selling your mortgage to another financial organization, even one that identifies itself as a collection agency, is perfectly legal. Since you were pursuing a loan modification, just a guess but perhaps that may have prompted Citi's sale to wash their hands of a loan they didn't really want to modify?

[freeme0215]

It is noted on the cover page "Transfer of Servicing Notice"...

Noted also is that Citiimortgage is no longer my mortgage company

I was in the process of loan mod and now I am not sure where I stand

[norcal]

The same thing happened to our mortgage, effective November 1, 2010. I was told that it was a random choice of which loans were transferred to LBPS. I don't believe that for a minute. We were about 3/4 of the way through the modification process and ready to be approved at any time. I am having to start over with LBPS for a modification, so I'm not sure where we will end up. I would go online to the LBPS website and start the modification request process over. Citibank is supposed to transfer all paperwork over, but there is no timeline for them to do so.

[Flamingo]

Many mortgage companies on notice of a mortgagee filing BK switch that mortgage loan over to their BK Dept. In this situation, they may have transferred it to a division/company that services mortgages in BK. Your attorney should be able to advise you on this or a call to Citibank will give you an explanation. We had to start sending in our mortgage payments to a totally different address after our BK was confirmed. I would make a few phone calls to find out what occurred and if it is just a transfer of your mortgage to another division/department due to your BK and check where you are to now send your mortgage payments from here on out.

[justbroke]

As Flamingo writes, this appears to be only a changing in "servicing" and is very normal for accounts that are in Bankruptcy. It allows them to deal with the bankruptcy cases with a department -- or company -- dedicated to Bankruptcies. For example, when I filed my Chapter 13 back in 2008, HSBC Auto Finance transferred the "servicing" of my motor vehicle loans over to Ascension Capital Group which specifically deals with bankruptcies.

Also, modifications can be a pain in a Chapter 13. Once I converted to a Chapter 7, my new modification request was completed in less than 6 weeks total. I guess a Chapter 7 is a different motivator!

[Mauri1971]

After 2 years of trying to get a modification all I have now is terrible credit, default status, penalties, late fees and I am being sold WHILE STILL UNDER REVIEW! It is no consulation that I have ignorantly stayed on top of all my OTHER bills including $400 per month in unsecured debt payments. I trusted my mortgage company, that was my mistake. And it is my mortgage company that made all the other mistakes, of course...

I am a homeowner in the Richmond area. It is a small home for which I paid $100,000.00. I borrowed $107,000.00 to buy it. I am pretty sure I am a little underwater at this time.

I was misled on what is being called a 'dual-track' foreclosure, loan modification process. I was lured into this process that apparently helps mortgage companies but destroys the borrowers financial situation. Foreclosure is often the result of this offer to help a borrower. In fact, they are also destroying my credit saying that I am delinquent. I have been told many lies. They have made promises and then broke them. Please click below to understand better:


My story:


In Spring of 2009 I was trying to run a home-based business. I could not make the sales I needed to pay all my bills with my income. So I called all my creditors and to my surprise they all had options to help me, including my mortgage company, Litton Loan Servicing. I never told Litton that I could not pay my mortgage. I was just worried that all my bills could not be paid with my current income. I was struggling but not behind on any monthly payments. And, of course, I was also looking for ways to increase my income.


Litton Loan Servicing encouraged me to apply for a HAMP loan modification (Home Affordable Modification Program). After almost one year of non-stop paperwork and documents being faxed I got accepted into a "trial modification period". That was in Spring of this year, 2010. I asked them to explain the trial modification period. They said it was the final step that takes no more than 4 months, just make your payments on time and you will be fine and the modification should become permanent. I thought all was well. They asked me to send in more documents almost every 2 or 3 weeks. They were constantly losing my documents or telling me I did not send them. In some cases my documents were "timing out".

My payments were lower so I was happy about that. I was able to start catching up on other older bills. I even made some much needed improvements to my house since the city had sent me a notice that my trim needed painting and that I would be fined if I didn't fix it.


I made on-time payments, found roommates and even found employment. I stayed in touch with Litton and reported my new income like they asked. 4 months passed and Litton said I was still under review. About that time I had a mandatory counseling session over the phone with a HOPE counselor (HOPE is an alliance between HUD approved counseling agents, servicers and investors). The counselor asked me many questions and then recommended that I foreclose! I didn't even know that was something that could be recommended. I figured she was incompetent. I was on time with my payments and she didn't even ask if I had family I could borrow from. I ignored that advice and figured it was just a formality to talk to someone even if they were unable to do their job properly.


Litton was still reviewing my documents and I was told several times to re-send documents because they had lost the originals. After 7 months of timely payments and sending more documents I called them as always to check in. I got bad news. After 7 months they said I was denied the HAMP modification. I was given several confusing and unexplainable reasons over the phone, including that I had to many workout plans. Then they told me I owed them $3000 and that my home was in default. I receieved a letter saying they were "unable to offer you a HAMP modification because we cannot create an affordable payment equal to 31% of your reported monthly gross income without changing the terms of your loan beyond the requirements of the program". This was the first I knew abou this requirement. I could have been told and tried to adjust my budget or even just give up before default. Its crazy! Its,like they want me to foreclose!

Somehow I felt like I was not being helped at all. I was dumbfounded. I had obviously been lured into some trap and should have gotten a lawyer and not trusted my mortgage company. They had "pre-qualified me" in a written notice. They had verbally told me that everything looked good.


It was July 2010 when I was notified about the HAMP denial. I was told at first that I had to pay back $3000 or I would go into foreclosure. When I talked to Litton Loss Mitigation, the department that handles loan modifications, they offered to submit my documents for an in-house modification. They said that it was much easier to get an in-house modification so I should not worry. They told me foreclosure would not happen while I was being reviewed. I was still in shock that I was even hearing the word foreclosure. Nobody, not one single person told me verbally that it might be a good idea to save the difference of the original mortgage in order to be prepared for a denial. I read in the Loan Modification Agreement that I had signed that foreclosure proceedings could begin but I thought that would be for someone who lied or sent in fraudulent paperwork.


It is now late July 2010, I am in default and they told me to continue to make the trial modification payments. At this point I knew that I was not heading in the right direction. I was successfully paying off unsecured debt but I was accruing debt with my original mortgage and falling months behind. I have been on edge about what to do for the last several months. I kept faith that I would be approved for an in-house modification and I continued to stay on track with all my bills. I began to save some money since I wasn't sure what the future held.


In August I was offered full time work with my family business which had recently opened. I reported my new income for the in-house modification and called every couple weeks to check in with Litton. I wanted to be sure all my documents were in order. I was calling them at least every 2 weeks. I called Litton twice in November. The first time I was told I still did not need to send in any new documents. The second time I called, a couple of weeks later, I was told that I was denied the in-house modification. The reason: for not sending in new or updated documents! I was dumbfounded again. I asked why I was not notified. At first I was told that I had been called and sent a letter requesting documents. This was a lie. I asked what number they called and they would not answer the question (a typical response; no response at all) I mentioned to them that even if that was the case then that would have given me only 5 business days to respond (this was right after Thanksgiving). I was questioning their tactics and motives for everything at this point.


Finally, after pressing hard for answers, someone named Anthony Harris at Litton admitted that it appeared nobody contacted me and it was Litton's mistake. He admitted that it was on record that I called November 9th and asked if I needed to send in any new documents and that I was falsely told that I did no need to. He said he would re-submit me for an in-house modification. I was back at the beginning, after almost 2 years of waiting.


Meanwhile Litton Loans mortgage department was asking for $4126 and sent me a letter offering to help to do a short sale. In other words, a foreclosure was or is on the horizon. This did not seem like a good place to be. Then I was told by a recording over the phone that my loan was going to be sold to Green Tree Servicing on January 1st. I confirmed this with someone on the phone. Green Tree is currently being sued for unlawful death due to harassing phone calls. I don't expect I will make a lot of progress with them when and if I become their client.


With the threat of foreclosure and the fact that my loan will be sold to Green Tree I became very nervous and sent emails and made phone calls seeking help. I received a call from Litton's vice-presidential office from what sounded like a nice man named Benny Hibler. He said to re-fax all my documents attention to him. He said he would sort it all out and get me some type of modification. I could not find him for over a week. My research online has discovered that he is just a friendly voice that makes promises that cannot be kept. Finally he called and apologized that he did not know that my loan was being transfered. I asked why I was being billed for January 1st if I was to be sold to Green Tree on January 1st. The answer was I may prefer to do it for tax purposes. ??? That was the end of doing any more business with Litton. I don't expect I will send them any more money.


I have been upfront and honest with my mortgage company. I have been very patient. I have done what they asked and paid what they requested. I am now several months delinquent because of their requests and misleading offers. A Litton rep even told me that one of the reasons why I was not being approved or handled quickly was because I was not as close to foreclosure as other borrowers! I have done a lot of research and read that Litton is being paid large amounts of money by the government to offer these modifications. I also noticed that they have charged me all kinds of late fees and penalties. My credit is destroyed. I thought I was being helped, I was sadly mistaken.
It also occured to me that if I foreclose than my PMI will make sure Litton gets all thw money owed to them. This really raises doubts as tho whether they actually want me to stay in my house. They could turn a profit in the real estate market with this game they are playing.

It appears I was eager to find help and they were not eager to give any. I don't know what recourse I may have. I am still piecing it all together. I have considered waiting for Green Tree to take over my loan and then ask them what they can offer. I could do a chapter 13 which I expect would make most of my problems go away.


Sincerely
Pissed Off
and
Scared

[cosmicmama]

The same thing happened to our mortgage, effective November 1, 2010. I was told that it was a random choice of which loans were transferred to LBPS. I don't believe that for a minute. We were about 3/4 of the way through the modification process

For those who thinkt their loan was sold BECAUSE they were in the modification process....My Citi mortgage was also sold to LBPS, and it was before I filed (I just refiled on December 14), AND my mortgage was current. However, the last $700 payment I made to Citi seems to have gotten lost during the transfer, neither Citi nor LBPS has any record of it, and they are both passing the buck on who is responsible for investigating it. Grrrrrr....

[freeme0215]

I started this thread about Citi Sending me to LBPS. I pay my mortgage as part of the BK monthly payment. This money is sent to LBPS. I have not received anything from LBPS till this past week, when they sent me a letter, asking me WHY I was not paying my mortgage! I calle my attorney and she said that we need to do a "motion to compel", meaning LBPS has to appear in court and state the reason that they are not working on the loan modification as stated in the BK agreement.

Is anyone else, paying there mortgage as part of their monthly BK payment? I have been doing this since Sept 2010.

Thanks
Marlene

[justbroke]

It is standard and required, in Florida at least, to pay secured debt through the Trustee. I can't believe LBPS demanded payment. I don't know how you can compel them to do a modification, unless you had the BK Judge actually issue an Order telling them to.

[freeme0215]

Yes, I do pay mortgage(secured debt) thru the courts. I was require to pay 31% of my income monthly towards the mortgage. This mortgage number is significantly lower then what I was paying prior to the BK final confirmation.

SO can LBPS foreclose? They did send me a letter as I stated that they were aware I was behind in paying the mortgage.

So to be confusing,

MArlene

[cosmicmama]

LBPS strikes again.

My creditors meeting is next week, I finally refiled.
A couple of months ago LBPS sent me a letter saying that they didn't have a record of my having flood insurance on my property (it's in a flood zone) and that I needed to send them a declarations page from my agent to prove I had insurance. I did so. Then this week I got a statement stating that they never got proof of flood insurance so they had bought some at my expense and now I owe them $1200 for it! I already have flood insurance and it costs less than half that. not to mention the fact that I never got credit for the last mortgage payment that I made to Chase, neither Chase nor LBPS has a record of receiving it and they are playing pass the buck, even though I have canceled checks to prove it.
What an idiot company.

[walkthaplank]

Sorry, I don't believe it is an idiot company. I think it is deliberate. Maybe not at the individual level, but at an infrastructure level where different units are set up in such a way that it is easy for things to get misplaced, or different units do not have access to the same information. I used to have a mortgage company that would hold my mortgage payments and not apply them until they were past the grace and they could charge a late fee. Of course if I sent them return receipt, the payment was applied immediately. These types of loan servicing companies are scum and they are looking to suck in every bit of extra cash from you. For the OP, perhaps your attorney will get the trustee to smack them down for contacting you about your mortgage when it is under the control of the trustee. Perhaps even sanctioning them for violating the court order of confirming your plan.

[freeme0215]

My attorney has sent them a letter stating that the mortgage payment was being paid thru the BK trustee.

My attorney says a motion to compel will force them to tell the court WHY they have not even started loan modification proceedings.

I have been paying since Sept 2010, with LBPS getting 31% of my income monthly.

They have NEVER asked for paperwork, that I read about constantly in this posts. I simply am in the dark as to my status.

I cannot go online and even look at the status with LBPS as when I enter my loan #, it states I am not allowed to ascess that account!

I did go to the online public records here and make sure they have not filed a lis pendens. Nothing there.

If they will not work with me, what happens to the money I have been paying into them via the BK trustee? Are they applying it at all?

Thanks

[jasymoice]

Building of same insurance if I which covered and when I provided info for insurance against floods which has been included. They now hold my checks to deliberately late.I was never late with Chase and no explanation. I had the extreme difficulty trying to pay online or by phone with LBPS...