Confused - Who is servicing my loan?

[Shuganon]

Initially, Flagstar bank was servicing both my first and second mortgages. My ch7 was discharged and closed 5/24/2010. I did not reaffirm either mortgage. Stopped paying 2nd mtg -continued paying 1st mtg. As of today am delinquent two second mortgage payments and am current on the first mortgage. I do not intend on paying either the 1swt or 2nd mortgages 8/1/2010.

In a letter from Flagstar on 6/15/2010, I was notified they sold servicing rights (2nd mtg only) to Specialized loan servicing, LLC effective 8/1/2010.

In a subsequent certified letter from Flagstar, 7/17/2010, received notice of default (2nd mtg only) for not paying June 1 and July1. Right to accelerate (blah, blah, blah).

How can Flagstar begin foreclosure if they sold servicing rights to someone else?

[newbie2]

Initially, Flagstar bank was servicing both my first and second mortgages. My ch7 was discharged and closed 5/24/2010. I did not reaffirm either mortgage. Stopped paying 2nd mtg -continued paying 1st mtg. As of today am delinquent two second mortgage payments and am current on the first mortgage. I do not intend on paying either the 1swt or 2nd mortgages 8/1/2010.

In a letter from Flagstar on 6/15/2010, I was notified they sold servicing rights (2nd mtg only) to Specialized loan servicing, LLC effective 8/1/2010.

In a subsequent certified letter from Flagstar, 7/17/2010, received notice of default (2nd mtg only) for not paying June 1 and July1. Right to accelerate (blah, blah, blah).

How can Flagstar begin foreclosure if they sold servicing rights to someone else?

Servicing rights means that the company would be handling your payments etc. Flagstarr still holds the mortgage (the lien).

[Flamingo]

Initially, Flagstar bank was servicing both my first and second mortgages. My ch7 was discharged and closed 5/24/2010. I did not reaffirm either mortgage. Stopped paying 2nd mtg -continued paying 1st mtg. As of today am delinquent two second mortgage payments and am current on the first mortgage. I do not intend on paying either the 1swt or 2nd mortgages 8/1/2010.

In a letter from Flagstar on 6/15/2010, I was notified they sold servicing rights (2nd mtg only) to Specialized loan servicing, LLC effective 8/1/2010.

In a subsequent certified letter from Flagstar, 7/17/2010, received notice of default (2nd mtg only) for not paying June 1 and July1. Right to accelerate (blah, blah, blah).

How can Flagstar begin foreclosure if they sold servicing rights to someone else?:unsure:

The answer is right in your posting - the effective date of 8/1. They (Flagstar) own the mortgage and after 8/1 you will receive notifications from the new servicer of the second mortgage. They didn't sell the mortgage, they sold the "servicing rights." Pull out your mortgage paperwork witih Flagstar and read the fine print as to what they can do when you are late with any payment.

[Shuganon]

I understand that only the servicing rights have been sold. What I do not understand is why they would sell/transfer the servicing rights if they were going to FC. Flagstar is the investor on this 2nd mortgage.

Can you explain why they would use this tactic? The investor on my 1st mortgage is FannieMae and Flagstar continues to service the mtg.

[Flamingo]

I understand that only the servicing rights have been sold. What I do not understand is why they would sell/transfer the servicing rights if they were going to FC. Flagstar is the investor on this 2nd mortgage.

Can you explain why they would use this tactic? The investor on my 1st mortgage is FannieMae and Flagstar continues to service the mtg.

Pull out your mortgage and related documents that you signed at settlement. In there will be indicated what they will or can do as to your mortgage if payments are not received Since you are still paying on your first mortgage, it does not appear your intention is for the house to foreclose.

[Mwasovsky]

It's very difficult for me to deal with banks. There are so many papers, documents. You have to communicate with thousand people to get one simple paper. Especially I don't like Flagman Bank. I had some problems with them. And I'm not the only person who had http://flagstar-bank.pissedconsumer.com/.