Ch13 Lien strip changing hands.

[spidge]

I fear something may be amiss on my lien strip. My HELOC is listed in my ch13 to be stripped and is listed with BofA, the original lender. In checking credit to be sure there was no change and sending the appropriate court papers BofA never mentioned any change of hands. So today I come home to find two identical letters, one for my wife and one for me, stating that my loan servicer is changing from Green Tree to Specialized Loan Servicing with a reference to an unfamiliar account number. I assume this is for my Heloc and will call to confirm in the AM, but now I wonder if there is something jeopardizing my lien strip. BofA did not show for the debtors meeting and made no claim, so the situation makes me wonder if more action that needs to be taken.

So I will call to confirm, but has anyone any experience in a similar situation?

[despritfreya]

Servicers change all the time. Your attny will know what to do - just make sure you tell him/her. Not a big deal. The problem comes with the loan itself is "purchased" or assigned to a new lender. Just had this happen so, once the lender's attny advised us that we had sued the wrong party (no requirement to record the assignment in my state unless lender is foreclosing - but notice was sent to the client who did not think it important enough to tell us), we simply agreed to substitute the new "holder of the note" as the defendant. Again, no big deal.

Des.

[spidge]

Thanks Des, I called yesterday and the agent told me she did not understand why they moved it as there is info about the BK and that it has been written off and account closed. I will make copies and send it to the attorney with a note. By the way it is for my HELOC.

I wonder if moving the servicing of the loan caused me not to be included in the mortgage forgiveness that many folks have experienced?

[despritfreya]

I called yesterday and the agent told me she did not understand why they moved it as there is info about the BK and that it has been written off and account closed. . . I wonder if moving the servicing of the loan caused me not to be included in the mortgage forgiveness that many folks have experienced?

The problem is that the account representative does not understand, as she readily admitted.

Changing the entity that services the loan (or selling the paper for that matter) is par for the course and no big deal. Filing a bk would not eliminate this as moving the servicer or the paper itself is not a violation of bk law. Writing off the loan (charge off) is an accounting principal that does not necessarily mean the lender will not attempt to collect or sell the paper.

As to the "mortage forgiveness", I do not know. But, in the end, the 13 will accomplish the same thing.

Des.

[spidge]

The problem is that the account representative does not understand, as she readily admitted.

Changing the entity that services the loan (or selling the paper for that matter) is par for the course and no big deal. Filing a bk would not eliminate this as moving the servicer or the paper itself is not a violation of bk law. Writing off the loan (charge off) is an accounting principal that does not necessarily mean the lender will not attempt to collect or sell the paper.

As to the "mortage forgiveness", I do not know. But, in the end, the 13 will accomplish the same thing.

Des.

Thanks Des. I have priority debt(taxes and arrears on 1st mortgage) so will have to complete the 13 anyway, so it likely will have no impact on me anyway.

[spidge]

So I recently received a request from SLS to respond with my SS number so that they can submit proper and accurate IRS forms. I think this is a way for them to renew the collections clock and and gain information they otherwise do not have. Therefor they are fishing for something they have no right to.

Am I correct in not supplying them with any info? I do not plan to respond in any way.