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Bank of America sold my 1st mortgage to Ocwen Loan Servicing, LLC

Discussion in 'Bank of America Mortgage Help' started by t holland, Nov 4, 2012.

  1. t holland

    t holland LoanSafe Member

    Bank of America originally owned our 1st mortgage and our Home Equitiy Loan. The 1st mortgage is now in foreclosure but the Home Equity Loan never was foreclosed on because I have kept it current. We owe $37K on our first mortgage with only 3 yrs 3 months to finish paying the loan and also after having the loan 26 years with payments of $900. a month. I could not keep up with the payments due to loss of income. The Home Equity Loan has been kept current with the payment only $225. a month. I was able to keep it up due to budgeting. We still owe $96k on the Home Equity Loan. We just recieved a letter the other day stating that BOA has now sold our 1st mortgage to Ocwen Loan Servicing. With waiting on a court date for the foreclosure on the 1st mortgage. How is BOA able to still foreclose on our 1st loan since they sold it and I am still faced to keep paying the 2nd mortgage to BOA. I thought both loans were tied to our house. So should I keep on paying my Home Equity Loan knowing another company has the 1st mortgage which I guess is still in foreclosure. I would have thought since BOA sold the 1st they already got paid. No word from Ocwen about the change. I am afraid to ask them not knowing what is coming down the road for our future sake.

    What to do.
  2. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Welcome to the community T Holland.

    I'm very sorry to hear you have experienced a loss in income having only three years left to pay on the mortgage. It is true both mortgages are attached to the property, but it is very common for both a 1st and 2nd mortgage to be serviced by different banks. Mortgages are often times transferred from one servicer to the next and Ocwen will pick up where BofA left off. Nothing has changed in regards to either account besides the fact you will now be dealing with Ocwen on your 1st mortgage and not BofA. Generally it takes about 30 days for the new servicer to fully update your account in their systems. The good thing is that Ocwen has been one of the best lenders to work with in regards to loan modifications. How many months are you behind on payments and have you contacted Ocwen to see if your account is showing in their systems? If not, I would contact Ocwen right away to see if they have your loan info.
  3. t holland

    t holland LoanSafe Member

    I will give Ocwen a call but before I do just incase of the worst senario the bank does foreclose on my 1st mortgage what happens to the Home Equity Loan? Should I file bankruptcy before it forecloses. Or just walk away. The situation of our income will soon reduce quite a bit due to my husbands job status and him going on Social Security.
  4. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    I would not recommend filing bankruptcy unless your 2nd has threatened to file a lawsuit against you to collect on the account. What state are you currently located in?

    Once the foreclosure is finalized your 2nd may become a sold out junior loan and you can find a great deal of info about this topic in the following thread:

  5. t holland

    t holland LoanSafe Member

    My loan is in Florida.
  6. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Well Florida is a recourse state so the lender can come after you once the foreclosure is finalized but this does not necessarily mean they will. Again always use BK as a last resort and you can file within a day if they do happen to file a suit against you. You may want to consult with a local real estate/foreclosure attorney to go over your situation. Using the link below you can find legitimate attorneys in your area.

    National Association of Consumer Advocates | Consumer Protection Advocates and Attorneys - Help for Consumers
  7. t holland

    t holland LoanSafe Member

    Thank you for all of the great advice. I finally understanding the process alot more that when I started this process. One more question should I still keep my Home Equity Loan current or let it go unpaid.

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