"Produce The Note" Strategy Question: My servicer just sold my loan, did it hurt me?

[Social Apocalypse]

My attorney is very likely going to incorporate the "Produce the Note" strategy in some form (either in connection with bankruptcy, or foreclosure, or other eventuality) against my lender to help me achieve restitution from these monsters. We are extremely reassured that they will not be able to.

That said, I just got notified this past week that my mortgage was once again transferred to PennyMac (which I am actually happy about, because I feel that adds an additional layer of options, they like to drastically modify loans). I know I should know the answer to this, but these days my brain is like a carnival with all of the stuff that is going on and trying to swim fast enough to know what I am doing.

Does this transfer create a new, note, or does it muddy the trail of the note that much more, or does it make no difference at all?

I do know that the note is being handled by MERS, so I guess that's good, but I expect they are being a "little more careful" with them these days.

Thanks again, you people that reach out are truly Saints. I have sent SOOO many people to this forum to benefit from the guiding light of experience and truth that is being generously given out here. It's wonderful support for those of us who have chosen to fight till the death for our RIGHTS to holding big money accountable to their contracts... They have made such a mockery of our legal system (OR TRIED TO) I am confident that they will find that it's not all that bad of a system.

Happy Friday everybody!!

[so-cal-gal]

Who serviced your loan when you applied for a mod? Any chance it was CountryWide? Did they have you execute a modification contract that was never honored?

I am not certain from the details that you have provided it you had already entered into an agreement to modifiy your note or not. Obviously your complaint reads like this might be the case. If so, it is SO much like what CW is doing, although my note was sold to Litton but Litton has the note transferred into MERS also.

I don't know that 'MERS' is a good thing. It just makes it easier for the foreclosure process to proceed in my humble view.

Since the note was transferred, you can try with PennyMac to get a mod. I presume PennyMac is only the servicer, or are they also the owner of the note? You need to find out WHO OWNS your note.

My own fiasco with a mod from CW that was never implement although it was signed, sealed and delivered (even verified) has the note now at Litton. Litton claims I do not meet the note-holder's criteria for modification (hmmmm, and this note was acquired while in arrears? Oh, Really.)

The strategy my attorney is testing: Try using the MHA program (we prefer to approach MHA via HOPE, not NACA.). Also if you apply directly via the servicer, they may not check MHA until AFTER checking thru other programs.

Find out if PennyMac is participating in the MHA program. IF so, call on the HOPE group for the MHA program. If you are facing forecloseure, let them know of the urgency. They will switch the call over to the escallation team immediately. IF you have an existing modification contract that was not honored, INFORM them. (In fact my call to MHA was made from my lawyer's office.) If PennyMac is a participant and you have an existing mod fiasco, you may find they will recommend that either the existing mod is honored or that they create a better one. That is what Litton is being told in my case.

So why try MHA when we know the investor is being a refusnik? It seems that when the SERVICER (Litton) joins the program, the investors no longer have that 'final say'. We shall see if Litton tries some OTHER 'wiggle'. My whole case is a 'set up'.

[Social Apocalypse]

Thanks;
Well, we have not completed a modification process yet. We were denied at first attempts.

The note is now owned by a securitizer (can't remember the name) and the trustee is US Bank. The servicer is PennyMac, as of Oct 1.

PennyMac is currently making the news because they are former Country Wide execs who are purchasing huge lots of toxic loans at "fire sale" prices (Moe just wrote about this, I think) and then doing PROACTIVE modifications to the loans to make them "good" loans, then reselling them at a huge profit. That is why I am optimistic that they will offer us a modification in the event that our other plans don't work.

We are not in foreclosure. We actually rescinded our loan in May, but of course it was ignored by the servicer. In an effort to enforce the rescission, I learned that in the 9th Circuit court, they make us prove that we can TENDER the loan BEFORE they uphold the valid rescission. (NOT FAIR AT ALL). Since we are on the verge of Ch 7 (filing in the next few weeks) there is no way I will qualify for a refinance, my attorney tells me, so the awesome rescission we have is all for nothing.

***That is the most devastating part****

Ironically, had I learned about my ability to rescind as recently as six months ago, I WOULD be able to tender. How sad is that?? It's just too much to take.