NCB transfer to GMAC Not valid... is that legal

[mairausch]

Original docs signed with National City Bank (NCB), since July 2006. Started process modification with NCB Feb 2009 after writing letter to the top 10 execs of company. Had a forbearance agreement with NCB, so not in default, minimal payments until August 2009 while modification was taking place. Was told by lost mitigation agent that he had the authority to do the entire process.

Receive letter stating GMAC taking over the loan servicing on June 1, 2009 from NCB. Called was assured by the lost mitigation agent that all paperwork would be transferred and agreement would be in effect.
Received loan number for payment due June, 1 on May 28th, they gave us a loan number.
Got number of a person, not just generic line for GMAC from NCB. Began leaving messages daily.
Sent lowered payment to GMAC for July 1, 2009
Sent letters to top 13 execs of GMAC asking for someone with authority to help because we were paying as agreed.

July 17, 2009 Phone call from Legal Lost Mitigation Dept at GMAC, wants all paper work again, they don't have it from NCB.... and by the way CAN YOU SEND YOUR ORIGINAL LOAN DOCS TO US! They don't have them.

July 20, 2009 received letter from GMAC Advocacy Resolution Specialist referring to letter to President of GMAC Al de Molina stating: GMAC Mortgage LLC acuired the above-referenced account from National Ciity Mortgage on June 2, 2009. At the time acquired the account was refectling dur for March 1, 2009 with unapplied funds..... etc... etc....

"Any modification or repayment negotiations in process with National City Mortgage proir to the transfer are no longer valid. You must submit information and documentation to GMAC Mortgage to review in order to determine what options, if any, may be available to you."

Is that legal? We were not behind or in default and now this?

The state of Oregon law if it is your primary residence and live in it during foreclosure you are not responsible for the loan.... (shortened version)

Jen

[Evan Bedard]

Hi mairausch welcome and thank you for joining the forum.

"Any modification or repayment negotiations in process with National City Mortgage proir to the transfer are no longer valid. You must submit information and documentation to GMAC Mortgage to review in order to determine what options, if any, may be available to you."

Is that legal? We were not behind or in default and now this?

The state of Oregon law if it is your primary residence and live in it during foreclosure you are not responsible for the loan.... (shortened version)

I'm not sure if this is legal, but from my personal experience helping homeowners with modifications is that if a loan is sold to a different servicer we would have to resubmit all information and restart the process. I'm going to copy your thread in the attorneys section as well to see if they can tell you if this action is legal?

[mairausch]

GMAC was the investor on the loan when NCB was servicing it. The NCB lost mitigation guy told me they were the investor after I got the letter from NCB.

Jen

[so-cal-gal]

Originally Posted by Evan Bedard

Hi mairausch welcome and thank you for joining the forum.



I'm not sure if this is legal, but from my personal experience helping homeowners with modifications is that if a loan is sold to a different servicer we would have to resubmit all information and restart the process. I'm going to copy your thread in the attorneys section as well to see if they can tell you if this action is legal?

Evan, there are transfers occurring on notes where actual MODIFICATION CONTRACTS were issued by Countrywide. These notarized contracts in over a 1000 cases are NOT being honored by BofA. In some cases, they are adding to the problem by transferring the note to places like Litton while claiming that the MODIFICATION CONTRACT is being processed. They have verified the contract that THEY issued is properly submitted by the borrower.

BofA is BREACHING the CONTRACT CW offered. These Modification Contracts are the ones issued in compliance with the CA AG lawsuit settlement.

Beware of telling everyone that a transferred note causes you to have to 'start over'.

CW is apparently using this ploy to move certain notes into the hands of private investors who's whole intent is to force foreclosure of homes that have been targeted.

Some of these modification contracts that BofA is not honoring are not being transferred to other companies.

Regardless of that further transfer, the abandoned modification contracts ARE BEING SUCCESSFULLY LITIGATED. BofA is breaking several laws in addition to flagrantly ignoring basic contract law.

The difference is whether it was only an APPLICATION for a mortgage modification versus these full-fledged MODIFICATION CONTRACTS.

In this case, I don't know if mairausch has such a signed modification contract or not. If they have that type of contract, then the modification contract needs to be honored.

[so-cal-gal]

Something else bothers me about this transfer. Any transfer of a note requires notice to the borrower from BOTH companies (possibly in a combined letter). That notice is to be given to the borrower at least 15 days PRIOR to the transfer taking effect. That is RESPA I believe.

If they did not give the proper notice, this could be used as LEVERAGE to get the new company to honor the prior agreement instead of having to start over.

If people get one of these letters, they also have 60 days after the date of transfer to complain about the transition. In my case I was in receipt of one of these letters before the transfer and I objected PRIOR to the transfer. My objections were unheeded. But then again, mine was an actual CONTRACT that they were trying to ditch.

If people get one of these letters during a modification, I recommend immediately WRITING a letter to request that the transfer be delayed until AFTER the modification is completed. The lender then has got to respond to your request.

[Well, it you are Litton, you don't respond. But that does not mean all companies should break the rules like Litton does.]

[mairausch]

I wrote all of our congress and representatives and got a reply... My paper work is going to the Oregon Attorney Generals Office... They want to look into the situation.

Dear Mr. C....,
Please accept my apology for not answering you more quickly. My 86 year old mother had some health issues as soon as the Legislative Session ended and life at my house has been in turmoil. She is doing better now and things are calming down a bit.

I had my assistant call the Attorney General's office regarding your situation and here is what they advised:
They would like you to mail to them copies of your correspondence with GMAC/NCM. Please include account numbers and send them a narrative, much as you have done for us, that outlines what has happened and what needs to be addressed by the AG's office.

Mail all of this paperwork to:

Salem, Oregon 97301

Mr. Darling has indicated that he and his staff will do whatever they can to help you. Thank you for contacting me.

Regards,

Representative Judy Stiegler
House District 54
900 Court St. NE, H-489
Salem, Oregon 97301
(503) 986-1454

[so-cal-gal]

GOOD FOR YOU!

It is not yet a complete victory but a step in the right direction.

Meanwhile, you may want to advise GMAC that you have forwarded all correspondence to the AG's office. (Possibly ask an attorney first.)

This may be enough leverage for GMAC to 'find' and process the existing modification package.

I certainly hope so!