Selling Mortgage Note to Co-Borrower--Legal or Not ??

[Frank123456]

My wife was the sole heir to her mother's estate. Her mother and an unrelated individual signed a mortgage putting a lien on her house. After my mother-in-law passed away, we personally made payments, as well as the estate and the co-borrower, on the note. The North Carolina bank sold my mother-in-law's (deceased) mortgage to the Co-borrower on the note. The bank did not provide us the 15 day notification as required on the signed "Servicing Disclosure" contract. The co-borrower also didn't give us any notice of his purchase of the note. The Co-borrower then attempted to foreclose on us about 30 days later. The bank's excuse was that the Co-borrower was not considered by them to be a "servicer", therefore they didn't have to notify us.

Isn't the banks' actions illegal? Wouldn't the Co-borrower have been the new 'Servicer'? Thanks for your comments. Respond here and copy to my e-mail if you would please… [email protected]

 

[HomeGuru]

There is more to this story than what you posted and there are some complex issues to deal with. Hence, you need to hire a real estate attorney.