Loan Being Transferred To Another Servicer While In The Middle Of Trying To Get Assistance - Help!

jwa81

LoanSafe Member
Jun 23, 2014
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Hi everyone,

I have another thread that I posted on here a few weeks ago, but I thought I'd start a new one for this since this is about something completely new that has just occurred. To recap, this past spring, my husband and I had some difficult times financially due to me taking a pretty large pay cut at my job and my husband being out of work all spring due to a severe injury and needing 2 surgeries. That caused us to fall behind by 90 days on our mortgage.

We are now, fortunately, in a much better financial situation as my husband has finally gone back to work and I got a new, much better paying job a couple of months ago, so all is good there; however, we have been waiting for 3 months for BOA to give us some assistance, whether it be a forbearance or another modification (we had a modification done 2 years ago, but they said we may be eligible for a another).

Well, my customer relationship manager from the office of the president just called me a few minutes ago and informed me that our loan is being transferred from BOA to another servicer called Carrington Mortgage Services, LLC (whom we've never heard of) effective August 1st.

Being as that is only a couple of weeks away, my CRM told me that she sent an escalation request to the investor to hurry up on the final decision on our file because of this transfer that is about to occur in a couple of weeks (our investor is USDA), but who knows if they will actually get it done by then. Our file has already passed underwriting and now is just waiting for final approval by the investor. I'm just a nervous wreck now because of this.

What happens when your loan is transferred to another servicer while you're in the middle of trying to get loan assistance??? I'm kind of having a 4-alarm panic attack right now, so I'm hoping that someone can put my mind at ease a bit.
 
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Moe Bedard

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Aug 10, 2007
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Hello,

Unfortunately, I have seen this happen hundreds, if not thousands of times over the last 7 years and in most every case, the loan modification process had to be started all over again. Even if they are days away, they more than likely would tell you whatever you want to hear until they transfer the loan. My understanding is there is some internal guidelines or secret in which once the loan is sold, all activity and loan workouts cease.

I wish I had better news, but you should hope for the best and plan for the worst.

Please keep in mind that you can try again and do not lose hope because of this. It happens to a lot of people and many of these same people were able to work out a loan modification with their new servicer.
 

jwa81

LoanSafe Member
Jun 23, 2014
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Great. Definitely not what I wanted to hear. I have already started working with someone at my state's Consumer Credit Protection Bureau, who is going to see about getting me an attorney because of this. I also just sent an email to the CEO of BOA and threatened that I would report them to the CFPB as they are already in violation of their guidelines as it has been well past 30 days since they received all of my documents. I also said I would contact the Attorney General. My CRM at BOA assured me that the status of my loan and the fact that I was in the middle of this process has absolutely nothing to do with why my loan is being transferred to this other company, but I find it too coincidental to believe that. She also told me that if this whole process still isn't finalized by 7/31 that Carrington Mortgage would just pick up where BOA left off. I did actually call Carrington and explained the situation and they told me the exact same thing, that they would resume the process where BOA left off, so I don't know what to believe at this point. All I know is that my stress level just went up about 1,000,000 points after getting this news today.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,850
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Southern California
www.loansafe.org
I'm sorry about the stress. You have to understand that you cannot control this process and stressing over it will do you no good but make you sick and affect your sleep.

You are doing great and everything you can to get help. Maybe they will honor it and I'm wrong or maybe these complaints you are making will help you.

But as you said, why would they transfer the loan and sell it to Carrington if they didn't plan to do just that? The facts are that these banks and CRM's often lie in this process.

If you do not meditate, now may be a good time to learn how to relax when you are stressed because this may go on for months now. The good news is that this doesn't mean you will not get a loan modification and you still have a great chance in saving your home.
 

jwa81

LoanSafe Member
Jun 23, 2014
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I am absolutely very suspicious as to why my loan is now being sold. Why would they do that while I'm right in the middle of trying to get assistance with my mortgage??? My CRM told me over and over that it had absolutely NOTHING to do with the status of my account and that it was completely random. I have a very hard time believing that! Hopefully my email to the CEO and all of the complaints I am filing will get me some much needed results.
 

Myrwyn

LoanSafe Member
Jan 27, 2014
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I cant speak to how this will be handled while in process, but the same month Chace signed off on our modification (after 3 TP's), we got a letter saying we were being moved to Carrington.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,850
466
1,000
49
Southern California
www.loansafe.org
Quite frankly, they make money by servicing your mortgage and even more money when you are late and they service it so they can rack up the fees. They also make money by selling your mortgage and they make none to very little when they help you with a loan modification. Their fiduciary duty is to their investors who invest in these companies so the can make money.

There are laws like here in California with the Homeowner Bill of Rights that cover this and it is called dual tracking;

If a borrower has been approved in writing for a first lien loan modification or other foreclosure prevention alternative, and the servicing of that borrower’s loan is transferred or sold to another mortgage servicer, the subsequent mortgage servicer shall continue to honor any previously approved first lien loan modification or other foreclosure prevention alternative, in accordance with the provisions of the act that added this section.

Do you live in California?
 

Comfort45

LoanSafe Member
Jul 15, 2014
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I am absolutely very suspicious as to why my loan is now being sold. Why would they do that while I'm right in the middle of trying to get assistance with my mortgage??? My CRM told me over and over that it had absolutely NOTHING to do with the status of my account and that it was completely random. I have a very hard time believing that! Hopefully my email to the CEO and all of the complaints I am filing will get me some much needed results.
Just to let you know I had the same thing happen to me. I filed complaints to no avail and I am left scrambling to start the process over with the new servicer. I had my loan with BofA for many years only for them to transfer 15 days before the modification date. I agree with Moe there is no reason to panic. It is disappointing but not the end of the game. I wouldn't spend too much time filing complaints against them. My take is they are operating within the rules currently written. That being said I am sure it is no accident - BofA figures they can pass it off to another servicer rather than work with borrowers. They don't tell you the truth. Eventually whistleblowers will come forward and say they were told to lie and stonewall same as before. Better to spend the time getting the package to your new servicer. thankfully you have copies of all your important documents. BofA will meet a deserving fate someday. Best of luck to you.
 
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jwa81

LoanSafe Member
Jun 23, 2014
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Thanks for all of the replies. I greatly appreciate them. It makes me feel a tiny bit better knowing that I'm not the only person this has happened to. I definitely believe that it's no coincidence that our loan got sold when it did. I did call Carrington today as soon as I found out about this and they told me that they would just pick up the process where BOA left off and that I wouldn't have to start the whole process all over, but I'm not holding my breath. That could have been completely false information. I am working with a housing counselor who works for our state and she said that she is going to locate an attorney to help with this. This whole process is the most frustrating and stressful thing ever; however, I'm crossing my fingers that it will go at least somewhat smoothly.
 

jwa81

LoanSafe Member
Jun 23, 2014
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One question - Bank of America told me that it was my loan's investor's (USDA) decision to transfer my loan to another servicer and not theirs. Is that true? Or was that just another bold faced lie and it really was BOA's decision?
 

jwa81

LoanSafe Member
Jun 23, 2014
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I just got some not so great news. My CRM just called me in response to the email that I had sent to the CEO last evening. She also told me that there were still no updates on my account and that she hoped to have an update by the beginning of next week. Just as she had finished telling me this, FedEx dropped off a letter from BOA stating that I do not quality for any assistance and it says the reason they denied me is based on my credit reports from the 3 bureaus!!! I NEVER authorized them to pull my credit and they never told me that they would be pulling my credit! There was NO REASON FOR THEM TO DO THAT!!! I already HAVE a loan with BOA and I was simply requesting assistance in getting caught up on the few payments that we are behind and they pulled my credit reports and denied me based on that?!?! Is that even legal?!?!?! They never pulled my credit when I got a modification back in 2012!!! I do have an attorney now who has agreed to represent me free of charge that the housing counselor from the State of Maine Consumer Credit Protection Bureau found for me. My blood is BOILING RIGHT NOW!!! I just sent yet another email to the CEO of BOA.