Foreclosure Stories: My Mortgage Gets Sold

Just because I wasn't paying my mortgage didn't mean that I didn't have contact with my mortgage servicer.

They called dutifully---in some cases up to four or five times a day---to get me to pay my past due balance.

I was truthful with them.

Since they couldn't make a reduction in my payments, there was no point in continuing the conversation.  No job=No deal.  Since I didn't have a job, why have the same conversation over and over?

Note:  It would of been a conversation I would up had up to five times a day, every day, telling the same story.

No thank you.

Ever so often I would pick up the calls and reiterate what I had already said but nothing was going to change until employment came my way.

On one of those calls the customer service agent came up with a novel idea---why don't you make a lump sum offer to purchase your property?

Honestly, until that moment the thought had never crossed my mind.

Where in the hell was I going to get almost $200,000?

Part 1:  Foreclosure Stories:  I Stopped Paying My Mortgage

Part 2:  Foreclosure Stories:  Getting Lucky

Part 4:  Foreclosure Stories:  My Home Is Worth $20,000

Part 5:  Foreclosure Stories:  The $20,000 Loan

Part 6:  Foreclosure Stories:  The End

Without saying that the value of my home was far less than that, the customer service agent suggested that I do some due diligence and check the current comparables on similar properties in my zip code.

As I found out, the bursting of the housing bubble had not been especially kind to Woodlawn or the rest of the south side.

At the time my home was valued at $50,000.

Naturally my servicer wants the whole balance of the loan, not the balance on what the home is worth.

As I stated in my last post, if your home increases in value, you're not going to give the bank back any profits you make so why should they want to get any less than the balance of the loan?

By this point it was late summer and I hadn't paid my mortgage in almost nine months.

My mortgage servicer was reluctantly moving towards making a deal for a reduced amount.

Then another curve ball was thrown my way.

My mortgage was seemingly sold and real estate prices on the south side continued to plummet.

Seemingly sold, you ask?

Transferring the servicing rights is a common practice on the secondary and sub-prime market but in my case the company who was doing the servicing also seemed like the people who owned my mortgage outright.

Now I had to start the process from scratch with a new lender.


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