Mortgage Profit/Loss writeoff

[Anonymous]

In June of 2009 we were trying to negotiate a lower payment with out Mortgage company (this is our main mortgage) they would not work with us and told us that they were basically writing off the mortgage. Since then we have recieved no phone calls or papers in the mail...nothing at all. Not wanting to stir them up at the time because my husband was unemployed we didn't contact them either. Now he has a job and we were looking at new houses so the lender ran our credit and the mortgage is coming up as a profit loss writeoff. Should we contact the company and see whats going on? The lender said we cant get another mortgage with this on there but we are afraid we will clue them in and they will all of a sudden foreclose. Everyone I ask is baffled. It is also showing under another bank than we previously knew of so we dont even know who to contact.

[StartingOver10]

Mortgage servicers sell defaulted mortgages all the time, sop.

If you want to find out what is going on with the property in a legal sense, go online to the county in which the property is located to the public records section (usually the Clerk of Courts). Put in your name and all the public notices, lis pendens, liens, mortgages, deeds etc will show for each property you owned in the county. If you click on the individual record you should be able to see the entire instrument (pdf).

You won't be able to get a new mortgage until the last property has been properly transferred out of your name for a minimum of 3 yrs.. There are a couple of ways to do this: Deed in Lieu, Foreclosure or short sale. If the lender hasn't started the foreclosure yet, put your house on the market with an experienced short sale agent so you can get the property out of your name. A quit claim deed won't extinguish the mortgage and the foreclosure will still have to be completed if you choose that method. However, if you have only one loan, you might be able to negotiate a Deed in Lieu of foreclosure directly with the servicing lender now.

[Anonymous]

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@StartingOver10 wrote:

Mortgage servicers sell defaulted mortgages all the time, sop.

If you want to find out what is going on with the property in a legal sense, go online to the county in which the property is located to the public records section (usually the Clerk of Courts). Put in your name and all the public notices, lis pendens, liens, mortgages, deeds etc will show for each property you owned in the county. If you click on the individual record you should be able to see the entire instrument (pdf).

You won't be able to get a new mortgage until the last property has been properly transferred out of your name for a minimum of 3 yrs.. There are a couple of ways to do this: Deed in Lieu, Foreclosure or short sale. If the lender hasn't started the foreclosure yet, put your house on the market with an experienced short sale agent so you can get the property out of your name. A quit claim deed won't extinguish the mortgage and the foreclosure will still have to be completed if you choose that method. However, if you have only one loan, you might be able to negotiate a Deed in Lieu of foreclosure directly with the servicing lender now.

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I dont see anything on our property from the mortgage company. does that mean there is no lein?

[StartingOver10]

You should have been able to pull up all the records under your name for that property: the original recorded deed, original mortgage, assignment(s) if any, lis pendens, certificate of title etc.

Were you looking at your name and the legal description of the property?

If you can't find anything, you might either have to go to a title co and have them do a search for you or an attorney. There has to be a complete record, both of your purchase and any dispostion of the property. Not all counties are online (but most are by now) so if you are in a rural area, maybe you have to go to the Clerk of Courts office to get the records.

[Anonymous]

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@StartingOver10 wrote:

You should have been able to pull up all the records under your name for that property: the original recorded deed, original mortgage, assignment(s) if any, lis pendens, certificate of title etc.

Were you looking at your name and the legal description of the property?

If you can't find anything, you might either have to go to a title co and have them do a search for you or an attorney. There has to be a complete record, both of your purchase and any dispostion of the property. Not all counties are online (but most are by now) so if you are in a rural area, maybe you have to go to the Clerk of Courts office to get the records.

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The original deed and original mortgage showed up. The last mortgage we had was a refinance of the original and nothing is showing up on that one.

[StartingOver10]

What happened to the property?

[Anonymous]

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@StartingOver10 wrote:

What happened to the property?

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We still live in the house we never left. Like I said they stopped contacting us when we didnt come to an agreement and nothing since then

[Anonymous]

I contacted a lawyer they pretty much said i can pay them to do a title search but I can do that on my own. I called and they charge $250 so I was trying to avoid that. but is this public record thing like what the title company sees?

[StartingOver10]

Oh!

Well, if there is one mortgage only on the property, you might be able to do a Deed in Lieu. Normally the banks want you to put it on the market for about 60 days before they will accept a DIL.   The other alternative is to short sell the property. The lien is still there, even if the mortgage servicing has been sold.

No one will give you a new mortgage with the old one currently in default (profit and loss write off is a defaulted loan). If I were you, I would contact an experienced short sale Realtor in the area to put in on the market if you want to start to move ahead.