Question: if the bank that started the foreclosure process over 15 months ago (never went past the intent or no judgement ever finalized of such) did a loan transfer before foreclosure and sold the loan to another investor 4 months ago…who in turn upon the purchase of the mortgage had to record such… does the initial foreclosure process then start all over from square 1?
Answer: – In many cases, the loan was not actually sold rather it’s just being serviced by a different institution. It’s more common to see the loan being transferred to another who will be servicing the loan. In either case, when a loan is transferred, you are still the owner of the property. That has not transferred. So everything picks up where it left off even though there might be a short delay for the new loan servicer to pick up where the file left off.
A loan transfer before foreclosure is a common scenario. But don’t think that just because the loan was bought or rather transferred that you are out in the clear. It just means someone else is now accountable for the loan and you will be dealing with them. They are fully aware of the situation and will pick up from where it left off.
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