Anyone have their house lender send them to collections???

[253BK]

I just got a letter telling us the CITI bank has sold our loan or is having our loan serviced by a local lawyer so does this mean they charged off the money that was owed to them and sold it to this law firm???

Second We are going to file soon and will be adding all rears into the payment plan to get us up to date the way I see it is the second has been charged off and the law firm will have to take whatever the trustee gives them am I right???

Also I am geussing the second mortgage is gone and has been charged off then? I really dont know I never thought a mortgage company would do that!

Any info would be good

[lrprn]

I just got a letter telling us the CITI bank has sold our loan or is having our loan serviced by a local lawyer so does this mean they charged off the money that was owed to them and sold it to this law firm???

The loan has likely just been transferred to the lawyer's firm for collection or to start foreclosure proceedings. Is this a first mortgage or a second loan against the house?

Second We are going to file soon and will be adding all rears into the payment plan to get us up to date the way I see it is the second has been charged off and the law firm will have to take whatever the trustee gives them am I right???

Sorry but no. All secured lenders against the house expect to be paid in full even if you file Ch 13 and even if a loan with the home as collateral has been sold to someone else. Only non-secured lenders like credit cards may get only a portion of what you owe them in Ch 13.

Also I am geussing the second mortgage is gone and has been charged off then? I really dont know I never thought a mortgage company would do that!

I highly doubt this is what has happened. If you haven't already, you need to contact your lawyer immediately and discuss what has happened to your second mortgage loan and how it may impact your Ch 13 filing.

This is not the time to make assumptions or guesses. Your house could be at stake. Go ask your lawyer exactly what the letter means asap.

[HHM]

Your reading too much into charge off....a charge off has ABSOLUTELY no bearing on your obligation to satisfy the debt. Also, secured debt, typically, does not get CHARGED OFF, it is simply sold.

The second mortgage is VALID until the debt is paid, or until the holder of the lien releases it (i.e. files a release of lien with the county recorders office where the real estate is located).

There is a way to lien strip a 2nd mortgage in a chapter 13, but there can be ZERO equity (not even 1 penny) in the real estate that would cover the 2nd mortgage; meaning, the house has to be worth less than the balance on the 1st mortgage.

[253BK]

It is worth less that the first balance as of right now and prices are dropping! Really the only reason I am trying to keep it is so I dont have to apply for another house and get NO after NO due to credit!

I really dont know what will happen now the law firm has the collection and Citi tells us to call them to fingure out anything I feel like they have wrote it off/sold it and want nothing to do with it/us anymore

THoughts

[rrockinggramma]

http://www.cnbc.com/id/23115224

maybe this is what is happening for you. Actually it is a good thing if they will lower the amount you owe. LOL

[253BK]

That might just be Sounds like the law firm will accept a % of what is owed! the % is unknow for now but my realtor friend thinks it will be around 10% to be paid in full!

THat would make my day/year if that was the case!