Multiple Creditors in foreclosure

[CaliQuestion]

Would appreciate any feedback...

In my foreclosure, the loan servicer transfered the loan four months AFTER the Trustee sale to another loan servicer. The old and new servicer are on my credit report but the new servicer never moved forward with any foreclosure proceedings against me. The original lender won the Unlawful Detainer judgment and I went to bankruptcy court and filed Chapter 7.

I have two servicers on my report for the same first deed mortgage loan. The first servicer (the one that held the foreclosure proceedings) applied for "relief from automatic stay" but the new servicer has not made a move to file anything in bankruptcy court yet.

Isn't the new servicer bound by the automatic stay in the bankruptcy as well? So even if the first servicer gets it's relief from stay granted, doesn't the other servicer have to get a "relief from stay" granted as well?

[tobee43]

servicers are usually are not owners of the mortgage...they just service the holding company...however, there could have been a transfer of the loan itself, that you may not have been notified of. so did they transfer the actual "loan" or just the servicing of that loan??

[CaliQuestion]

the letter I rec'd from the new servicer shows a new lender

[ccsjoe]

Cali....I might be confused here, but please...post the timeline and actions will you? I see something utterly wrong here. I believe you said you got foreclosed (sale happened either to a third party or the bank) then you filed BK then there was an assignment to another servicer?

[CaliQuestion]

ccsjoe... you are not confused. I got foreclosed on.... then months later loan was transfered to new servicer... old servicer got judgement.... I filed bankruptcy... now BOTH are on my credit report for the same loan.

[tobee43]

Cali....I might be confused here, but please...post the timeline and actions will you? I see something utterly wrong here. I believe you said you got foreclosed (sale happened either to a third party or the bank) then you filed BK then there was an assignment to another servicer?

that's what it sounds like??? can't happen...but then it's calif...right?

[ccsjoe]

OK, let's try sorting this one out.

You got foreclosed on XX (Actual sale, public auction, got recorded in the county recorder's office?)

4 months after the actual sale the loan, which now SHOULD NOT EXIST, only the deficiency, etc, was assigned to a new servicer (again per county recorder's records?)

After that action, boh servicers are STILL reporting on your credit report derogatory information about the same loan twice...what is the loan status shown as?

After that OLD servicer, not new owner right? got a UD against you, which apparently you did not contest or fight, and will be serving you with eviction papers? Has served you? Had the sheriff serve you?

You in retort filed CH7 to attempt to.....what?

Am I getting this right?

[tobee43]

OK, let's try sorting this one out.

You got foreclosed on XX (Actual sale, public auction, got recorded in the county recorder's office?)

4 months after the actual sale the loan, which now SHOULD NOT EXIST, only the deficiency, etc, was assigned to a new servicer (again per county recorder's records?)

After that action, boh servicers are STILL reporting on your credit report derogatory information about the same loan twice...what is the loan status shown as?

After that OLD servicer, not new owner right? got a UD against you, which apparently you did not contest or fight, and will be serving you with eviction papers? Has served you? Had the sheriff serve you?

You in retort filed CH7 to attempt to.....what?

Am I getting this right?

this situation may just, hopefully be a paperwork confusion problem...i hope.

[CaliQuestion]

Yes, you are pretty much correct:

Foreclosed sale recorded in county records

4 months later, loan transfered...not recorded but they have sent me a copy of a mortgage note

loan status on both show foreclosure

OLD servicer got UD, I did fight it but judge did not want to consider all the forged documentation, so I am currently appealing.

afterwards, I pulled my credit report and found out both were there, so I filed bankruptcy to give me more time to hold off sheriff until I can get my appeal heard or my civil suit heard... but now I'm considering an adversary proceeding in BK court

So now that I've got this 2nd servicer on my credit report I'm trying to figure out if they are supposed to abide by the automatic stay

[CaliQuestion]

I'm sure it's just a paperwork confusion, but at this point...it's there and I'm in bankruptcy so my impression is ALL creditors get caught up in the automatic stay... I've pointed out the double creditors to both parties for months now and no one seems to have cleared it up... so I'm not sure just how much of this is a "paperwork" problem

[CaliQuestion]

Also I should mention that I sent the new servicer a QWR and they sent me back an payment accounting report for the time they'd had the loan and according to the spreadsheet... the loan shows paid in full I'm scratching my head

[tobee43]

Also I should mention that I sent the new servicer a QWR and they sent me back an payment accounting report for the time they'd had the loan and according to the spreadsheet... the loan shows paid in full I'm scratching my head

there are a few places to start...first with the first servicing company....i would immediately notify them and have them update their information to remove the loan. secondly, and sorry, this is going to take some work from you...but you'll need to challenge the credit report itself, to get the line item removed.

now...is one, the first one, going after you for any money??

[CaliQuestion]

at this time, no one is going after me for any money.

I'm sure since they have made a BIG faux pas and I've filed bankruptcy they are trying to figure out who is who and what is what. I'm assuming SOMEONE has to come forward in the bankruptcy and claim the debt

[ccsjoe]

The first servicer for the original creditor filed the UD against you? If it was the first servicer, who got the sale, then the UD is legal and the only paperwork confusion is with the assignment to second servicer and subsequent actions. If the second servicer filed the UD against you, then you have a case based on the technicality that there was no loan to assign as the foreclosure happened.

You will need to send letters to each of the three credit bureaus with a copy of the foreclosure itself challenging the second entry.

[CaliQuestion]

Here's another interesting piece to my puzzle. I signed the loan years ago with a lender... and a few months later it was transfered to the OLD servicer. When the foreclosure happened, the lender on the foreclosure is not anyone I'm familiar with or are they recorded on any assignment. All of this I brought up in the UD, but of course...judges listen to what they want to....