You have just found out,Customer that the sale of a loan from one financial institution to another does not require that a new deed of trust be prepared or recorded. Under centuries-old contracts
law, the purchaser "steps into the shoes" of the prior owner and enjoys the same rights and has the same obligations as the original.
There is really no utility in demanding a deed of trust from Chase. There is none. What does give Chase the right to foreclose is its agreement with the 2nd owner of the loan, which traces upstream to your original lender. This is similar to the "Substitution of Trustee
" situation commonly used to hire someone other than the original lender to perform the non-judicial foreclosure. In fact, a search for everything recorded regarding your house *might* uncover some similar documents evidencing the transfer of deed of trust rights from the first, to the second, and then to the third. Even if there are no recorded documents, the fact that you know of the exchanges of the "paper" indicates that you most likely received proper notice
The situation might be different if you had full payments ready to make but were denied knowledge of where to send them. A partial payment is a breach of the loan agreement.
Some lenders are willing to put a loan into "forebearance" for a few weeks and maybe up to 3 months to give time for loan modification
to either be worked out or be denied. Any homeowner who gets that concession should have a "plan b" for what to do if the modification request is denied.
A Chapter 13
BK might be the best solution. It would forestall any foreclosure for at least 30 days in most situations, and a debtor who wants to keep the house can re-affirm the debt and put the missed payments into the 5-year repayment plan
. This puts the creditor back into a fully-paid up position, with the exception of post-petition
late fees and perhaps other charges (default interest rate hikes might be prevented too), by the end of the plan.
A debtor must have regular income to fuel the Chapter 13 plan, must live on a specified portion of the income (federal standards, with some usually small adjustments for local conditions, limit the $$$ allowable for housing, food (depending on family size), and other monthly expenses), and must pay the remainder of the income to the Chapter 13 BK Trustee. The Trustee then divvies up the money after taking 10% for his or her services. The Plan must provide for full payment of all of your secured creditors (like the home lender, now Chase), and give more money to the unsecured creditors (usually credit cards, and the "under-secured" portion of otherwise secured loans such as being upside-down in a car loan) than they would have received if the debtor had filed a Chapter 7
At the end of the plan, most debts that are still unpaid get discharged and no one can chase the debtor for them ever again without getting into major trouble.
The re-affirmation of debt option is generally available in a Chapter 7 BK only if the debtor is current on all monthly payments before filing for BK.