Assignment of mortgage

8 Replies

So I need some help with understanding assignment of mortgage. Why would I see assignment of mortgage being past around like a hot potato? Should I worry about bidding on this house? Plus I see on the doc adjustable rate open-end home equity conversion mortgage. What would I have to worry about if I win the bid? I feel this owner has no equity in the home because there are two of these mortgages.

Servicers dumping repeatedly means a couple possibilities: nothing maybe, borrower is a pain, in forbearance and claiming they will sue, no equity, have not paid taxes and insurance in the past 18 months, location is rural, servicer in financial trouble...  Servicers are not going to give people modifications this down turn, and in general if they claim they are unemployed there are few to no options. If you told me the servicer was SPS or Shellpoint I can tell you why they have them

@Caroline Gerardo thank you for your reply. So first mortgage was AAKO INC. Boulevard mortgage company then they assigned Washington mutual bank. This took place 07/12/2002 mortgage and the assignment of mortgage

New mort from AAKO then they did it again to financial freedom senior funding

Then in the same year another record mortgage from secretary of housing and urban development

A release from AAKO IN 5/4/07

12/18/09 assignment grantor financial freedom to mortgage electronic

Then they to bank of new York Mellon

Then they to mortgage assets management.

Mortgage assets are the plaintiff.

And when I look up the doc on all mortgages it say 288,000.00 and it seems that all of them besides the first mortgage are adjustable rate open-end home equity conversion. One of them did say second

The plaintiff doc that I was reading say nothing about which mort it was but the total mort that is was and that was 288,000.00.

Originally posted by @Mikey Grabon :

@Caroline Gerardo thank you for your reply. So first mortgage was AAKO INC. Boulevard mortgage company then they assigned Washington mutual bank. This took place 07/12/2002 mortgage and the assignment of mortgage

New mort from AAKO then they did it again to financial freedom senior funding

Then in the same year another record mortgage from secretary of housing and urban development

A release from AAKO IN 5/4/07

12/18/09 assignment grantor financial freedom to mortgage electronic

Then they to bank of new York Mellon

Then they to mortgage assets management.

Mortgage assets are the plaintiff.

And when I look up the doc on all mortgages it say 288,000.00 and it seems that all of them besides the first mortgage are adjustable rate open-end home equity conversion. One of them did say second

The plaintiff doc that I was reading say nothing about which mort it was but the total mort that is was and that was 288,000.00.

You are looking at a reverse mortgage. There is no real cause of concern when a mortgage gets assigned numerous times. There are a myriad of reasons why as what pointed out above. As I mentioned in another post you need to be careful of a potential 15% inheritance tax in PA, if you were to be the successful bidder on this

AAKO in 2002 and WAMU did not do reverse mortgages. I worked for WAMU as an executive in 2008 they were bankrupted by Chase essentially. If owner did get a HECM/reverse in 2009 and died thereafter let's guess in 2020 the heirs needed to file probate if there was more than $50000 assets to the deceased person's name including equity. A HECM/reverse is never a second. The HECM not will show as the total amount approved but not the total amount drawn. So the person(s?) lived 12 years after they turned 62 or older could they have drawn the maximum $288000 yes but it doesn't matter as the FHA insurance covers 25% and in foreclosure everything including taxes are paid. The heirs had first 12 months which they could have asked servicer for extension to 24 to refinance or payoff or sell. If servicer didn't follow timelines (I've seen heirs sue servicer in 2021 due to lack of procedure) they might win in court. Inheritance tax is the percentage that YOU pay now minus what the assessor said was value at person's death then 15% if there was no probate and nothing transferred to heirs. GET title insurance it's vital in case heirs make a claim and the title officer will get an appraisal of value at death minus the balance owed = what PA department of revenue will want. You send a letter asking for a release of the tax now. Lookup court records for last name of deceased person and address v last servicer. https://www.revenue.pa.gov/Tax...      what does your preliminary title report show now?

If value was $288000 when the person died and $288000 was the balance plus legal fees and costs no inheritance tax on the subject is owed but you won't know if they had other assets. What does the county assessor show as the value today?

Originally posted by @Caroline Gerardo :

AAKO in 2002 and WAMU did not do reverse mortgages. I worked for WAMU as an executive in 2008 they were bankrupted by Chase essentially. If owner did get a HECM/reverse in 2009 and died thereafter let's guess in 2020 the heirs needed to file probate if there was more than $50000 assets to the deceased person's name including equity. A HECM/reverse is never a second. The HECM not will show as the total amount approved but not the total amount drawn. So the person(s?) lived 12 years after they turned 62 or older could they have drawn the maximum $288000 yes but it doesn't matter as the FHA insurance covers 25% and in foreclosure everything including taxes are paid. The heirs had first 12 months which they could have asked servicer for extension to 24 to refinance or payoff or sell. If servicer didn't follow timelines (I've seen heirs sue servicer in 2021 due to lack of procedure) they might win in court. Inheritance tax is the percentage that YOU pay now minus what the assessor said was value at person's death then 15% if there was no probate and nothing transferred to heirs. GET title insurance it's vital in case heirs make a claim and the title officer will get an appraisal of value at death minus the balance owed = what PA department of revenue will want. You send a letter asking for a release of the tax now. Lookup court records for last name of deceased person and address v last servicer. https://www.revenue.pa.gov/Tax...      what does your preliminary title report show now?

If value was $288000 when the person died and $288000 was the balance plus legal fees and costs no inheritance tax on the subject is owed but you won't know if they had other assets. What does the county assessor show as the value today?

Not to put too fine a point on it, WaMu was bankrupt prior to the sale of its remaining assets to JP Morgan Chase by the FDIC.

Washington Mutual (WaMu): How It Went Bankrupt (thebalance.com)

@Peter Walther Kimberly Amadeo (retired, writes about healthcare) gets the #1 reason wrong.  "The Balance" is not journalism it is advertising.

Lehman's failure rocked the Fed. Government didn't want to save another bank and fell to pressure from Chase who had made offers in the past to buy WAMU.

WAMU was not a NYC stodgy banker. Kerry et al flew from WA to NYC to meet with Chairman Bernake and two banks not named in her article.

2008 Santander did not have any money to invest in a west coast bank in 2008 they bought Sovereign and suffered huge losses in auto loans and almost got shut down. No talks happened with Santander (today S. is a fine east coast operation).

Wells Fargo did not have the cash 

Chase told Kerry on the phone (while flying there) they agreed to a merger, then put pressure on the Fed (stab) that night to close and force WAMU into BK. FDIC took over and valued everything at a penny per thousand dollars, doors chained overnight, coffee and family photos on desks were dumped.

Chase got $300 billion in  liquid assets, $400 Billion in real estate holdings, and clients of west coast and Florida branches. Chase moved WAMU executives retirement accounts (previously fully funded $800 million) into rabbi trusts, took the money, and later bankrupted retirement accounts.

TPG survived the hit. Borrowers still have option ARM mortgages today at 2.55% interest rate. 2007 was the start of the second Great Depression, no economist calls it that. History is important.

@Mikey Grabon As long as it is the mortgage holder in 1st position that is foreclosing.....nothing else matters, as far how many mtgs or what the balances are.  You do have to watch for hoa debts, depending on the state, past due property taxes and any muniliens that may survive.

Originally posted by @Caroline Gerardo :

@Peter Walther Kimberly Amadeo (retired, writes about healthcare) gets the #1 reason wrong.  "The Balance" is not journalism it is advertising.

Lehman's failure rocked the Fed. Government didn't want to save another bank and fell to pressure from Chase who had made offers in the past to buy WAMU.

WAMU was not a NYC stodgy banker. Kerry et al flew from WA to NYC to meet with Chairman Bernake and two banks not named in her article.

2008 Santander did not have any money to invest in a west coast bank in 2008 they bought Sovereign and suffered huge losses in auto loans and almost got shut down. No talks happened with Santander (today S. is a fine east coast operation).

Wells Fargo did not have the cash 

Chase told Kerry on the phone (while flying there) they agreed to a merger, then put pressure on the Fed (stab) that night to close and force WAMU into BK. FDIC took over and valued everything at a penny per thousand dollars, doors chained overnight, coffee and family photos on desks were dumped.

Chase got $300 billion in  liquid assets, $400 Billion in real estate holdings, and clients of west coast and Florida branches. Chase moved WAMU executives retirement accounts (previously fully funded $800 million) into rabbi trusts, took the money, and later bankrupted retirement accounts.

TPG survived the hit. Borrowers still have option ARM mortgages today at 2.55% interest rate. 2007 was the start of the second Great Depression, no economist calls it that. History is important.

FDIC seems to think the execs of Washington Mutual blew it up.

On September 25, 2008, Washington Mutual Bank was closed by the Office of Thrift Supervision and the Federal Deposit Insurance Corporation was named receiver. Subsequent to the closure, JPMorgan Chase acquired the assets and most of the liabilities, including covered bonds and other secured debt, of Washington Mutual Bank from the FDIC as Receiver for Washington Mutual Bank. Any claims by equity, subordinated and senior unsecured debt holders were not acquired.

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