Mortgage has been transferred to another bank after my c13 confirmed

[lillymarlene]

I don't know if I should be worried. I just received a notice from LOCAL BANK where I've had my mortgage for the past 14 years, that they are transferring the servicing of my mortgage to OUT OF STATE BANK. It doesn't say anything about that it has been sold, but just that they are "transferring the servicing of my mortgage loan."

I called LOCAL and they claimed that it is just because they are restructuring, that I have not been "singled out." They said they have recently tranferred about 650 other mortgages. I was thinking: Yeah, right! Most likely it's 650 like me or ones they are afraid of for whatever reason.

I also spoke to the "new" OUT OF STATE and they claimed that nothing would change that everything and all terms should stay the same.

I should mention I have never missed a payment with LOCAL. But one little thing in particular that concerns me is that the "old" bank had payments due for me the first of the month, but with a 15 day grace period. This past year often around the 5th of the month (but well before the 15th) I'd run down to the bank and pay my mortgage in cash. Now of course I'll have the hassle of another mail in payment.

Then I'm not sure if this matters but, LOCAL bank is also listed as an "Unmodified Secured Claim" to be made under my plan.

Has this happened to anyone else? Is there anything that I could or should do about this? I am newly confirmed in my c13 and I hate to think of anything going wrong.

[catleg]

I wouldn't worry about it.
I'd be more worried about survival of local bank.
If they're selling off servicing rights of their portfolio loans, wonder if they're having trouble, maybe not TBTF. Sucks to be them.
You should have same terms from servicing bank. (Hopefully Wells, they're considered a good quality servicer).

[despritfreya]

Banks send loans to servicers all the time. Not a big deal. I would be more interested about the "restructuring" comment. Have to wonder how "healthy" your small local bank is.

Des.

[lillymarlene]

Thanks for the replies. Puts my mind at ease. I am worried about the health of my local bank, too. I've had a personal checking account there for years. This is one checking account I was able to keep after filing bk. Had to close out a few other checking accounts, since I or my father had defaulted credit lines with those creditors. I'm now running out of banks! :-)

[CCB35]

In the almost 5 years i have been in bankruptcy,My mortgage has been sold or transferred 2 or 3 times,now i am with Bank of America as my mortgage servicer.

[lillymarlene]

Thanks for the replies. But I have one more question should I ask the new bank to change the due date of my payments? My old bank had my due date the first, but these past 3 years, I have usually paid them anywhere between the 5th to the 8th and always before the end of their grace period on the 15th.

I don't want to be considered "late" or incur any penalty fees or extra interest charges. This is a 30 year fixed rate mortgage, if that makes any difference.

[despritfreya]

. . .should I ask the new bank to change the due date of my payments? .

Your due date, grace period and any applicable late charges are described in your contract (promissory note) and are not subject to change unless a mutually agreed modification takes place. The new servicer (and you) must abide by the terms of the contract.

Des.

[lillymarlene]

Thanks. So, I guess I'll continue making the payments much the same as I have been. Except, I'll treat it like the tt payment, and use priority mail, tracking receipt. (It's another little expense, but my peace of mind is worth it.)

[despritfreya]

Thanks. So, I guess I'll continue making the payments much the same as I have been. Except, I'll treat it like the tt payment, and use priority mail, tracking receipt. (It's another little expense, but my peace of mind is worth it.)

You should ask me how I deal with my mortgage. . .

1. Never use electronic anything.
2. Write a check.
3. Make copy of check and payment coupon.
4. Send check with payment coupon Certified Mail at least 10 days before the 1st of the month.
5. Place signed "green card" with copy of check and payment coupon.
6. When bank statement comes in make copy of page that shows check was cashed.
7. Place copy of statement with "green card" and copy of check and payment coupon.

Been doing this for 10 years. Not one payment/green card is missing. Mortgage company can NEVER tell me I am late or missed a payment.

Des.

[lillymarlene]

Thanks!!! What good advice. But I am a little afraid of any "signature" mail, though. The new address is a P.O. Box. (I'm afraid of slowing things down.) I suppose it would be best to somehow get this next payment ready two-weeks earlier than I have been, if I want to properly track this. What a pain in the a$$. I was so used to walking into the bank with my cash, and getting my stamped receipt. :-)