Gernal Mortgage Question

[longshot975]

What is the name of your state (only U.S. law)?

 

[STEPHAN]

Please post again. The preview function kills postings.

 

[longshot975]

Mortage Question

I will try and repost this and I will not select preview and maybe you guys can read this. I am in the process of having foreclosure papers served and in the foreclosure intervention process in my state of South Carolina. And since receiving the papers I have been researching alot of things on my loan and came by one document and had a general question about the issue, that document being the "Assignment of Mortgage" documents registered with the local recording agency at the court house, well my issue is this the assignment is by MERS, which I have seen cases where a lot of these were thrown out of courts because they are being found to be unenforceable documents in some states. But here is the question my original loan was owned by one bank who sold that loan to one Homecomings Financial LLC. but was serviced by GMAC who transferred servicing to Nationstar Mortage LLC when GMAC closed its businesses. And Nationstar LLC has been collecting payments on the account since 2008. But the document that assigned them rights to the mortage servicing, etc was not even registed with the court until July 2013, after the original owner of the mortgage Homecoming Financial LLC filed bankruptcy in 2011 and closed its business completely as of 12/31/2013. So my question really is, can a servicer collect payments on a loan when they were not authorized with an assignment of mortgage to do so until after 5 years of them collecting payments? Just a little confused on what the "assignment of mortgage" really allows or what it is intended for because I find examples online but nothing about whether a servicer can collect payments etc. without even being assigned the mortgage. Just trying to find some more thought on this and if this fact should be included in my response to the court summons by the servicer for foreclosure.

 

[longshot975]

any assistance

have seen lots of people looking at this site but no one providing a opinion.

 

[FlyingRon]

Assigning the mortgage and assigning service are two different things. One transfers the debt from one company to another (just as if you had borrowed the money from the assignee). The other just says, it's our money but we're going to let someone else take care of collecting the checks from the borrower.

I can GUARANTEE that the mortgage didn't just disappear. Someone has assumed the assets (mortgages) of the bankrupt entity.

The servicer means ABSOLUTELY SQUAT to you with regards to the foreclosure. The only thing that matters is the holder of the note and whether they were assigned or transferred the ownership of such legitimately.

Yes, the servicer can continue collecting even if the underlying note is transferred.

 

[longshot975]

Assigning the mortgage and assigning service are two different things. One transfers the debt from one company to another (just as if you had borrowed the money from the assignee). The other just says, it's our money but we're going to let someone else take care of collecting the checks from the borrower.

I can GUARANTEE that the mortgage didn't just disappear. Someone has assumed the assets (mortgages) of the bankrupt entity.

The servicer means ABSOLUTELY SQUAT to you with regards to the foreclosure. The only thing that matters is the holder of the note and whether they were assigned or transferred the ownership of such legitimately.

Yes, the servicer can continue collecting even if the underlying note is transferred.

But my question is to fold I know you say the servicer can continue collecting even note is transferred but what I am saying is can a servicer collect on the mortgage without being assignment the mortgage because there is nothing registered as far as an assignment of the mortgage that was just dated last year giving the servicer the options you mentioned, but prior to that there has been no assignement to a servicer registered with any court, except for what was in the original paperwork which was a different entity who had went out of business around five years ago, and the servicer who MERS just registered the "assignment of the mortgage" to was done in 2013 has been taking payments etc on that account since 2008, and did not know if they were allowed to take payments without the assignment of mortgage being in place.

Also one other question, would a servicer ever have a reason to zero out an account, such as when a modification is placed on the account or anything, because in the account summary they sent to me there was an entry where the account was zeroed out as "Payoff No cash" and then reentered again on the next line it is entered back into the account balance with no mention of a deposit, reentry of loan, etc. The account just goes from a zero balance to an escrow adjustment of $1262.72 and then the balance becomes 70523, and the next line escrow advance is then debited back out and the account is back at 70523." is this odd or was there a reason for them to zero balance out, because I can not find any mention of what "Payoff-No Cash" means online.