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Mortgage Co Refuses to Issue a Verification of Mortgage

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    Question Mortgage Co Refuses to Issue a Verification of Mortgage

    Hi. I filed BK7, discharged in 2012. Did not reaffirm my 2 mortgages, both were with Bank of America, then they sold the 2nd mortgage last year to Select Portfolio Services.

    I'm now refinancing. Bank of America gave a Verification of Mortgage to the new loan processor but Select Portfolio refuses to issue one. They claim they can't because my loan is in BK. The best they can do is give a print-out showing my payment history, but the loan processor/underwriter is saying this isn't good enough. The entire refinance now rests on this one piece of paper.

    My questions are: Is this normal or is Select Portfolio Services being difficult? Or is the new lender being difficult? What alternative documents should they accept in lieu of a Verification of Mortgage?

    Refinancing will lower my payments. Select Portfolio, by NOT issuing this document which may result in me NOT getting the refinance, is in essence, causing me a financial hardship. Do I have any resource?

    #2
    They are worried that they will get hit with a stay violation. If you are doing this yourself, you may need to issue to SPS a notice stating that they are allowed to talk to you, contact you, and provide information regarding the loan. I know it's nit-picky, but it appears as though they don't want to be put in a bad position.

    So draft the document and sign it. Scan it in. Then contact SPS and tell them that you have a release document so that they can talk to you. Ask them were to fax the document. Or, in the alternate, tell them that they can send it directly to the (new) lender. I believe the key is to make sure SPS is not going to get accused of attempting to collect a debt.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    I am not an attorney. Any advice provided is not legal advice.

    Comment


      #3
      Thank you justbroke That is very helpful.

      Comment


        #4
        Make sure that you only speak to the insolvency/bankruptcy department. Try not to speak with regular customer service representatives as they'll usually just say "we can't talk to you." However, the bankruptcy department can and most certainly if you waive notification rights.
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog

        I am not an attorney. Any advice provided is not legal advice.

        Comment

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