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Chase sold Loan to Select Portfolio Servicing Inc (SPS)

Discussion in 'Foreclosures' started by kitkat01, Aug 2, 2013.

  1. kitkat01

    kitkat01 LoanSafe Member

    I just received a letter from SPS that they are now my loan servicer, and Chase sold them my loan. I received it yesterday and they started servicing my loan as of 08/01/13, which was yesterday. Ok, same day notice... that doesn't look good for a start. I did not receive anything from Chase either. So here's my situation and I am currently NOT in foreclosure status with Chase but I am behind on my payments by like 2 months. I make sure I make payments and not get behind by 90 days because that's when they can start foreclosure. I was on a repayment plan and got behind so it was broken.. anyways, that's a long story but I am going to KEEP my house. No 2nd on the house anymore, we took care of that so I am not going to lose my house because of this bad servicing company. I was fine with Chase but it is what it is. So I only have 1 loan, and owe $730K but I am behind 2 months. 1st question is, how does this new services handle that and are they aggressive on their foreclosures? (anyone with experience with them, pls give me your input). 2nd, how are they with setting up repayment plan. I can try to setup a repayment plan with them, maybe their terms are better than Chase (?), Chase only lets you pay your behind payments within 12 months max.... if the new company allows more, I can probably handle that. 3rd, how are they with loan modifications? Based on what I've researched here, and online, they have tons and tons of complains and horrible in loan mods... Gosh, why did Chase sell them my loan? Anyone know if banks sells them only bad loans and then SPS will be aggressive in foreclosure??? HELP! Looks like I'm in for a ride. And there's no way I can pay them my 2 months behind up front, plus my normal payment... That's like 10K!
  2. kitkat01

    kitkat01 LoanSafe Member

    To add to my post... . I was approved for a Loan Mod by Chase back in 2010 and with a good interest rate of 2.?% interest up to 2015, and changes to a diff % but with a cap (max) and I was good with that.... Will SPS HAVE to honor this and I hope they don't change the approved terms. If they do, Is that ground for a lawsuit? Please advise. Thanks.
  3. TomEason

    TomEason LoanSafe Guide Staff Member

    kitkat01

    Thanks for your post. If your Chase mod was a HAMP mod, and you're still "in good standing", any entity that acquires ownership of the loan is bound by that loan mod agreement (contract).
  4. kitkat01

    kitkat01 LoanSafe Member

    Hi Tom! I don't believe it's a HAMP because of the amount. I am positive it's most likely an in-house type modification. And if it's not a HAMP, where does that take me? Are they allowed to change the terms? Also, what about my question on being 2 months behind but making payments, have you heard of this company if they are aggressive on their foreclosure process or is the 3 month line mark work for everybody? Chase doesn't send out foreclosure letters I was told unless you're 3 months behind. not sure if that goes for all other banks. Btw - I'm in the state of CA.
  5. Evan Bedard

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

    EVERY servicer is required to abide by state foreclosure laws and cannot expedite the foreclosure process without following the procedure step-by-step. I agree with Tom, they should definitely continue with the modification terms you have been offered and I'm not sure if any servicer offers a repayment plan exceeding a 12-month period. And they really should of given you notice over two weeks ago that your account is being transferred to a new mortgage servicer..

    Making Payments to Your Mortgage Servicer | Consumer Information
    [h=3]Transfer of Servicing[/h] If your loan is transferred to a new servicer, you generally get two notices: one from your current mortgage servicer; the other from the new servicer. In most cases, your current servicer must notify you at least 15 days before the effective date of the transfer, unless you received a written transfer notice at settlement. The effective date is when the first mortgage payment is due at the new servicer’s address. The new servicer must notify you within 15 days after the effective date of the transfer.
    Both notices must include:



    • the name and address of the new servicer
    • the date the current servicer will stop accepting your mortgage payments
    • the date the new servicer will begin accepting your mortgage payments
    • telephone numbers (either toll-free or collect), for the current and new mortgage servicer, for information about the transfer
    • whether you can continue any optional insurance, such as credit life or disability insurance; what action you must take to maintain coverage; and whether the insurance terms will change
    • a statement that the transfer will not affect any terms or conditions of your mortgage, except those directly related to the servicing of the loan. For example, if your contract says you were allowed to pay property taxes and insurance premiums on your own, the new servicer cannot demand that you establish an escrow account.
    • a statement explaining your rights and what to do if you have a question or complaint about the servicing of your loan.

    There is a 60-day grace period after the transfer: during this time you cannot be charged a late fee if you mistakenly send your mortgage payment to the old servicer.
  6. TomEason

    TomEason LoanSafe Guide Staff Member

    Hi kitkat01

    Thanks for your post. As is stated in Evan's post, the lenders notices must include "a statement that the transfer will not affect any terms or conditions of your mortgage, except those directly related to the servicing of the loan." Why not refer to your executed (signed) loan modification contract? Then you'll know for certain.

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