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Ask Barrister Your Own Question
Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 34284
Experience:  16 years real estate, Realtor. Landlord 26 years
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Can a mortgage note and deed to secure debt be transferred

Customer Question

can a mortgage note and deed to secure debt be transferred to another servicer 8 months after a foreclosure deed was posted at the county superior court clerks office. I thought once security deed was executed it was final.
Submitted: 6 months ago.
Category: Real Estate Law
Expert:  Barrister replied 6 months ago.

Hello and welcome! My name is ***** ***** I am a licensed attorney whowill try my very best to help with your situation or get you to someone whocan. There may be a slight delay in myresponses as I research statutes or ordinances and type out an answer or reply,but rest assured, I am working on your question.

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Has there actually been a foreclosure sale yet for the house?

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Or is it still in the process?

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thanks

Barrister

Customer: replied 6 months ago.
house was completely destroyed by fire in feb. of 2011. bank refused to maintain my ins. after TBW shutdown. Bank keep he ins. funds and filed a foreclosure deed for the property in 01/ 2014. I received a bill from Carrington mortgage in Aug. 2014 stating I owed them the money. When I checked at the clerks office there was an assignment transferring the note and the security deed
Customer: replied 6 months ago.
If you are interested I refinanced my home with HAM in Atlanta Ga. in 2008. The attorney was ***** ***** who has admitted to wire fraud and mail fraud. GNMA purchased my mortgage on BOA's word in Aug. 2009. I got documents from troutman sanders law firm showing loan current. The funny thing is HUD knows but don't want to admit wrong doings. This has been going on since 2009. If you want to know more you cal caqll.
Expert:  Barrister replied 6 months ago.

Ok, once the foreclosure has occurred, unless the lender sued for a deficiency judgment against you within 30 days of the foreclosure sale, then they are barred from doing so. So if they didn't do so, then you don't owe anything more on the mortgage and you can simply ignore any demands from any other creditor asking you to pay.

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But the foreclosing bank is free to transfer or sell the mortgage to another creditor if they can find one to buy it. It isn't legally enforceable after the foreclosure, but some shady debt collectors will try to convince borrowers that they still owe the debt and try to collect on it.

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thanks

Barrister

Customer: replied 6 months ago.
Bank of America has 124,724 dollars in insurance claim monies. They say they didn't finalize the foreclosure so therefore I did not get a 1099. Foreclosure deed says its a FHA mortgage. Now FHA says its not. The property got sold in 2015 and Carrington sent me a 1099 in 2016 saying the debt was 205,000. They said they changed the mortgage to a regular mortgage and didn't have to transfer property to HUD. I have documents stating GNMA owned the note. Where is insurance funds.
Customer: replied 6 months ago.
This problem has gotten to the point it is funny. I cannot believe that the U S government has lied to me repeatedly in writing. The IRS will not even talk to me anymore.
Expert:  Barrister replied 6 months ago.

Ok, if BOA transferred the mortgage and note to Carrington prior to an actual foreclosure sale, then there is nothing illegal about that. Carrington would then have to be the one who foreclosed and had a sale. But BOA should have transferred the insurance money to Carrington as the legal owner of the debt.

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And they can't change the mortgage to a different kind without your consent and a refi being pursued to convert the loan.

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But regardless, if there was a foreclosure sale and the lender who was the legal owner of the mortgage and note didn't sue for a deficiency within 30 days, then they are prohibited from doing so now and the foreclosure sale would have extinguished the mortgage.

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So you can tell Carrington that they are violating the Fair Debt Collection Practices Act by misrepresenting the status of a debt as collectible. Specifically:

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15 USC 1692e
(2) The false representation of --
(A) the legal status of the alleged debt
(B) any services rendered or compensation which may be lawfully received by any debt collector for the collection of a debt.

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And that if they contact you again about it, you will sue them for the statutory $1,000 per contact as allowed under the FDCPA.

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thanks

Barrister

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