Specialized Loan Servicing Took advantage of my financial well being Salt Lake City Utah
My home mortgage was modified with Bank of America in 2006. In 2010 BofA charged off my second mortgage and sent it to Select Portfolio Services unbeknown to me.Mind you, this was in 2010. Select Portfolio Servicing has now had my second mortgage in the amount of 31,941 dollars for more than seven years. Never once has SPS reached out to me for payment. The fact SPS had this second mortgage was discovered after numerous calls to BofA to find out what exactly happened to this "charged off, zero balance" second mortgage and how I go about getting the lien released. I am in the process of selling my North Carolina home which brought this issue to light. SPS is telling me that they sometimes never contact the customer and simply wait for the property to sell or get refinanced.
SPS is now holding my mortgage ransom and will not release the attached lien until i pay the full amount of $31,941. SPS is unwilling to settle for anything less knowing i am selling the property and must clear the deed/title. I understand this amount is my responsibility but all along was told the second mortgage was charged off and showed a zero balance with BofA. if only i was made aware there was still an active second mortgage with an attached lien I could have been paying on it and now owe much less than 31,941 dollars. The most disheartening thing is the fact SPS knows they have me in a corner now that the property is selling soon and the closing is scheduled. I should have kept that to myself i guess...Lucy is my contact at SPS and they will not let me talk about this second mortgage with anyone else. Lucy is offering no options but full payment or no lien release. She makes that very clear. Lucy even once told me i should have been more responsible of my responsibilities and I wouldnt be in this perdiciment. thanks for the sound advice Lucy but things happen...
1 Updates & Rebuttals
Robert
Irvine,California,
USA
Good One
#2Consumer Comment
Sun, March 26, 2017
So you got a 2nd Mortgage that you defaulted on, you admit that the amount is your responsibility. Yet when it actually comes time to when you find out you actually have to pay for it, all of the sudden they are holding your mortgage ransom. Well at least you are original.
You are right "things happen" and when "things" like you failing to pay your 2nd Mortgage happen, "things" like them actually wanting their money also happens often at a very inconienient time for you.
The ONLY benefit of the doubt I would give you is that you actually were clueless. That is either you didn't REALLY want to know what the Charge-Off meant or you just didn't understand what you were told. So let me help you out.
A "Charge Off" does NOT obsolve you of the debt. A "Charge Off" next to an actual Foreclosure, Repo or Bankruptcy is about the worst thing that can show up on your credit. As it basically is the lender telling the world that you were delinquent and they actually don't see you being able(or willing) to pay the debt. SO they are doing what is nothing more than an accounting process to remove it from their books.
Now, when they charge it off, the debt is still transfered/sold to another company. In this case SPS. You are still subject to the original terms and balance. The only difference now is it is just to another company. Yes, you agreed to this when you got the loan.
If they have a lien, it is up to the company as to how they want to collect it. The mortgage is secured by your house and they know they will eventually get their money. So unless you are proactive, there is really no incentive for them to try and track you down. Yes, even if that tracking you down was to give you a call or send you a letter.
Finally, generally just like the first mortgage, the 2nd would be "paid" from the proceeds of the house. So now if there are not enough proceeds to cover the 2nd the lien holder (SPS) is under no obligation to release it. You MAY get them to accept a "Short sale" but with a 1st and 2nd, it becomes a lot harder to get all your banks to agree. If they do...great. If they don't..not a RipOff.