Select Portfolio Services Filing Notice of Defaults on Charged Off Liens!

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,052
161
63
San Diego, California
www.loansreduced.com
LoanSafe Members,
I have experienced a number of homeowners with old charged off liens being threatened by Select Portfolio Services (SPS) as well as Notice of Defaults being filed. They are requesting to be paid off in some cases more than triple the original balance due to late charges, attorney fees and other items tacked onto the original balance. This has been an ongoing issue here in the forum with homeowners with older HELOC's or 2nd liens that were charged off staying idle. Be aware that they are no longer staying idle, at least with SPS.

Another important factor to be noted is where you live, if you live in a state that is a Non-Judicial Foreclosure state the lien holder can file a Notice of Default/Sale without taking you to court, even if your charged off lien is beyond the statute of limitations. If you live in a Judicial foreclosure state it can be a bit more difficult for these lien holders to foreclose as they have to take you in front of a judge which may throw the case out or may not.

I'm not sure the legal course of action that these lenders have at this stage or if this is a way to spook borrowers before sending it to a new debt collector but it is a concern. One person that I spoke to is living off of SSDI and Pension and doesn't nearly have the means to pay off a lien that started at 15,000 and now they are requesting over 90,000. I am not an attorney, please never take my advice as legal advice - I am a licensed mortgage originator.

What's the worst that can happen? The lender can come foreclose on the home.

How do you prevent that from happening? Settle with them and/or refinance to pay them off.

Here's the kicker - if they file a Notice of Default (NOD), You WILL NOT qualify for a conventional or government loan. That only leaves the option of portfolio loans that come with much higher interest rates. I do have a product available for whoever has had a notice of default filed against them for this type of situation.

I'm hoping that this article will make it to as many people as humanly possible before SPS forecloses or tries to foreclose on any future homes with their old charged off liens.

Please contact me for more information here: [email protected] or 619-379-8999.
 
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Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,052
161
63
San Diego, California
www.loansreduced.com
Forgive me, I shouldn't have put SLS on the initial post. From what I know so far, Select Portfolio Services (SPS) I have confirmed filing a NOD.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,052
161
63
San Diego, California
www.loansreduced.com
I just got another phone call from someone dealing with another company that I haven't heard of threatening to file NOD on a small balance 60K however property had over 700k in equity. I'm really wondering if many are trying to cash in on these old 2nd liens/HELOCs.
 

OneHugeMess

LoanSafe Member
May 30, 2016
473
32
28
This is terrifying news. There are so many of these 2nd liens sitting out there. ^ What state was that caller in?