My subject to mortgage account no longer exists with lender. Any ideas?

Question

I went to make my house payment on subject to house that I have owner financed and the bank (BOA) would not take my payment. Due to being the weekend I could not talk to customer service but I checked with automated service and gave the account number and it does not exist. I have power of attorney and listed as authorize person to speak on behalf of owner. Also I get all correspondence sent to my PO Box and noticed I did not get last months statement.

Does anyone possibly know what is going on? I have read that NationStar is taking over some BOA mortgages but I should have at least gotten something in the mail of a transfer or even if they are calling note due.

The loan is CURRENT as I make the payment on time every month. Owner has not gotten any phone calls nor have they called me. I will be calling BOA or should I have owner to call first?

Any insight would be appreciative.

Aaron Mazzrillo · Answer

sounds like the loan has been sold and since you are not the borrower, they didn't let you know. Better contact the borrower and see if any mail from the lender has showed up that he possibly tossed.

Jerry W. · Answer

@Barry Ratliff , I cannot help you with the bank, but you need to clearly document the problem with the person you are buying from so there is no chance they can accuse you of being in breach of contract.  Your post suggests but is not clear on if there is an existing mortgage as you also say the Owner is financing the sale.  Did you notify the mortgage holder of the subject to sale?  If not they could call the mortgage based upon sale of property.  If there is no existing mortgage you can set up an escrow with another bank and keep paying.

Barry Ratliff · Answer

@billgulley

Somewhat true but mostly Im helping a friend who did not want her home, no equity to resell nor wanted to rent it so I offered to manage her property and thought the wrap was best way to handle it. I cash flow $190 a month, no repairs since I ownerfinance wrap to a buyer, and received $5000 up front as down payment from buyer who lives in home and pays on time for last 2 years. Soon it will be time to refinance and have buyer in the house to pay off note as the market is turning for the better and equity builds. This only property I have like this. I mostly coach want to be investors and buy to flip my own. By trade though, I'm a real estate broker.

Xing Zhu · Answer

BOA sold my mortgage to Nationstar once.

It is possible that the notice was lost in the mail in your case. Nationstar will eventually contact you if they have it. It can be late but you will not be assessed penalty if they are late.

Bill Gulley · Answer

Glad it turned out, but I'd say your learning lessons is just starting. Your deal, is very convoluted and sounds like the trust, seller financing wrap, sub-2 and POA rolling it over to a new owner was a classic guru transaction putting you in the middle, assuming on going liability and brain damage for probably a small fee, that in the end could be lost.  But good luck, :)

Barry Ratliff · Answer

Mike and others following this post, come to find from BOA, they sold the note to M&T Bank. Still Not sure if BOA ever sent notice plus I never receieved notice from M&T that they were servicer. I will say though after reviewing my BOA records online, the contact information was changed to last physical address and phone number of seller who's name is on note I bought subject to. So it is possible notices were sent to that address. Thank gosh I had username and password to followup and change back to my contact info.

Lastly, M&T has been good to work with and offered for 2 months, no late fees for new BOA transferred loans. I will say though that i took advantage of no late fees on 2nd month and paid after 15th, I got calls from M&T wanting payment. Come to find out online when I did make that payment that the contact info was changed to last known  mailing address of the existing loan borrower and phone # changed to all zeros. Thank gosh again that I setup acct online with M&B to see those changes and change back to my info.

Lesson learned in this potential problem is always setup online accts with the subject to lein holder, pay your payments ontime and regularly check records online to make sure your mail address and phone number is in there.

Tom Goans · Answer

@Barry Ratliff,

Any input would be a wild guess at this stage.

I would recommend you document your challenges and communications with all parties to this transaction. It may be wise to keep everyone in the loop of communication.

I would also immediately contact a lawyer.

Staying on top of the issue could be a very wise decision. It may be easier and more economical than fixing a problem.

Best of luck.

Dawn Anastasi · Answer

@Barry Ratliff I know someone with a BOA loan who got sold to NationStar so it is possible the loan got sold.  He was having all sorts of issues with BOA anyway.  However it doesn't sound like NationStar is any better off as when he sent them some paperwork, they claimed they never got it.

Barry Ratliff · Answer

Thanks Dion, I figured some sort of letter alert would have been sent. But that has not taken place. I will update you and others of my findings.

My subject to mortgage account no longer exists with lender. Any ideas?

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