Filing next week... got letter today from bank that they sold my mortgage

[pinkpeanut01]

Anybody ever encounter this? Now what? I'm sure my attorney will give me his input when he calls me back, but man, I feel like the hits just keep on coming. The big bank that holds my mortgage now will only accept payments until the 15th of this month, and then future payments should be sent to the new bank. Ironically, the new bank is the one I actually bank with, so now I'm afraid I have to find a new bank to do my checking with. They're about to get screwed, and I don't want my checking account to get screwed too.
If I file before the date the new bank takes over the loan, what happens?

[justbroke]

You should not be concerned with who owns your mortgage. I say that with one caveat (which you are already aware of). Just make sure you don't have demand/timed deposit accounts (checkings, savings, CDs) at the same place you have credit products. I would start making arrangements to move my checking/savings! These can take time and if you have direct deposit, this could cause some delays. Additionally if you have BillPay and other automatic payments against those accounts, it will take some time to move it all to a new bank.

It is always best to be cautious. (Noting that the loan is probably ALREADY sold. It's the transfer of the servicing that takes several weeks.)

[btbeme]

This brought a question to my mind - maybe someone can answer...

Is this mortgage now a target for the Trustee? In other words, how long does it take for a mortgage that is sold to another bank to be "perfected" so that it cannot be vacated by the Trustee?

Or am I off track here?

[justbroke]

Is this mortgage now a target for the Trustee? In other words, how long does it take for a mortgage that is sold to another bank to be "perfected" so that it cannot be vacated by the Trustee?

No. This is not a perfection issue. The mortgage "is" in fact perfected as shown by the recordation of the Security Instrument (Mortgage or Deed of Trust) in the public record. The sale of a "negotiable instrument" (the mortgage) doesn't constitute or create a new security instrument.

However, there are Trustees who have attempted to collaterally attack bad assignments -- which is what is really done upon sale -- and the inability for the new owner of the Mortgage and Note to produce an indorsed Note in its name.