Local bank sold mortage to Green Tree. Any ramifications?

[shoopy]

My local bank just sent me a notice that they are selling my mortgage to Green Tree Servicing, effective January 1, 2013. I plan on keeping my home, so I'm guessing that the only impact on me, is that I re-affirm or don't re-affirm to a different lender, when I file BK.

The mortgage is current and has never been late, and my relationship with the original lending bank is good. Is there anything to consider, or worry about?

[AngelinaCat]

Green Tree is the same as American General Financing. They can be a bear to deal with. Unless, you are late or miss your payments, or they start making unreasonable demands, you should be okay.

With that said though, do a search on Green Tree Financial and read up on some of the 'horror stories'. Being informed beforehand is the best defense.

Good wishes!

[btbeme]

If you file before the transfer, make sure sure sure your payments are made in plenty of time. Once you file, your account gets moved to a different division (often with a unique payment address) within the company. Combine that with the transfer of servicing and you should make every effort to confirm your payments are received and credited properly.

Also be aware that, in some cases and in some states, if you have an impound account for taxes and insurance that it sometimes does not transfer. In some cases, you will be expected to fund that impound account while waiting for the refund from the closed account. Or, in many cases, the new servicer may have different rules regarding the minimum amount in the new impound account and expect you to fund it up to their guidelines (which could temporarily increase your payment). You may get a notice from Green Tree regarding the transfer and their funding rules, so read it carefully.

Just keep a close eye on your statements and/or online account (though they will both be shut off once you file) to make sure. And stay in contact once you file so you don't get caught unaware and get a late or missed payment because of all the chaos.

[AngelinaCatHub]

It seems to be a common opinion here that you might not wish to reaffirm anything. Here are the reasons in a nutshell: Things could change. Reaffirming is committing to the debt under no bk protection. Abiding by the ORIGINAL paper contract, and staying in payments on time or even ahead, they CANNOT take your house. IF anything goes real bad, you could walk away from it without suit for the deficiency. None of us know the future. You are bk, so do the best bk you can and plan on being "secure" in the event TSHTF. 'Hub

[AngelinaCat]

Green Tree is the same as American General Financing. They can be a bear to deal with. Unless, you are late or miss your payments, or they start making unreasonable demands, you should be okay.

With that said though, do a search on Green Tree Financial and read up on some of the 'horror stories'. Being informed beforehand is the best defense.

Good wishes!

'Hub actually corrected me. I was referring to GREENLEAF not GREEN TREE. However, in doing some side Google searches about Green TREE, I would just suggest using caution....

[shoopy]

@AngelinaCatHub, I understand the reasons why one might not want to reaffirm a mortgage, but one thing concerns me. I asked the majority of attorneys that I consulted, weather my wife would be allowed to continue making payments on the mortgage, if something happened to me, and if I didn't reaffirm. To a man, they said, "I think so" Another board member asked a similar question awhile back, but did not get a definitive answer either. I tried to find his posts, but struck out on search.

If it's not obvious, my wife is on the title, but I am solo on the mortgage. Rather than risk my wife not being able to continue making payments, if I don't reaffirm, it almost seems that there is little danger in re-affirming. I owe approximately $40,000 on the mortgage, as of most recent assessment, value is 120,000, payments are $600. The only way that I can see losing by re-affirming, is if the economy collapses entirely, and I can't sell house for $40,000, and have to move into cardboard box under expressway overpass, since if I can't afford the $600 mortgage payments, that will probably be all I can afford. PLUS, I am on Social Security disability, and collection proof.

Having said that, I would prefer to not re-affirm, if someone could direct me to a cite, or otherwise reassure me, where it says that wife would be able to continue with payments.

I should probably start a new thread, if I can think of an appropriate title for it.

[AngelinaCatHub]

@AngelinaCatHub, I understand the reasons why one might not want to reaffirm a mortgage, but one thing concerns me. I asked the majority of attorneys that I consulted, weather my wife would be allowed to continue making payments on the mortgage, if something happened to me, and if I didn't reaffirm. To a man, they said, "I think so" Another board member asked a similar question awhile back, but did not get a definitive answer either. I tried to find his posts, but struck out on search.

If it's not obvious, my wife is on the title, but I am solo on the mortgage. Rather than risk my wife not being able to continue making payments, if I don't reaffirm, it almost seems that there is little danger in re-affirming. I owe approximately $40,000 on the mortgage, as of most recent assessment, value is 120,000, payments are $600. The only way that I can see losing by re-affirming, is if the economy collapses entirely, and I can't sell house for $40,000, and have to move into cardboard box under expressway overpass, since if I can't afford the $600 mortgage payments, that will probably be all I can afford. PLUS, I am on Social Security disability, and collection proof.

Having said that, I would prefer to not re-affirm, if someone could direct me to a cite, or otherwise reassure me, where it says that wife would be able to continue with payments.

I should probably start a new thread, if I can think of an appropriate title for it.

I see your point, but see mine (and I'm not a lawyer). Why burden both of you with a "what if"? For sure I agree with you and IF you pass before her, she can still pay the mortgage and that if you BOTH filed bk jointly she would be protected too.

Now I don't care who is on the Deed, but if the mortgage is not paid by someone, the place can be pulled and she is your spouse. Don't subject her to that. But if she cannot pay, she has the assurance that she could move out without any repercussions. That is my point. Now, for you both, research this further on both aspects. It is what I would have done
now that I know stuff. There is always another side of the coin. Investigate both. If I have not said it before, Merry Christmas. 'Hub