Full question:
I just went to the county recorders office and got copies of my mortgage and warranty deed,because I believe that the chain of origination has been broken. But the clerk there told me if a bank sells your mortgage to another servicer it did not have to be recorded in the county office is this correct? My note says that country wide is the lender and recon trust is the trustee,but my mortgage papers that the county has lists Mers as the sooleey nominated lender. Bank of america is now my servicer and they tell me that Freddie Mac is the investor. I am not sure what to do with this information that I found. We tried to modify our loan last june - December when we told we did not qualify because we were currant. Help
- Category: Real Property
- Subcategory: Mortgage Satisfaction
- Date:
- State: Illinois
Answer:
Yes, it is possible for a lender to sell your note to another entity and the lien does not have to be recorded again because the new servicer of the loan steps in the shoes of the original lender and takes the priority from the date the loan was originally recorded. Whether the mortgage assignment needs to be recorded will depend on all the facts involved. Please see the following information from the link below:
http://answers.google.com/answers/threadview/id/164168.html
"Assignments
Section 47.3 of the Guide requires the Note file to include a
recordable mortgage assignment to Freddie Mac (for a non-MERS
mortgage) and any intervening assignments.
If MERS is the current mortgagee of record, but was not the original
mortgagee of record, a complete assignment chain from the original
mortgagee to MERS must be recorded (Guide Section 22.14(b)), but no
unrecorded assignment to Freddie Mac is needed in the file.
If MERS is the original mortgagee of record and the mortgage has not
been re-assigned by MERS, then no assignments need to be recorded or
in the file at all.
Example 1: Non-MERS
“A” is the original lender on the Note and original mortgagee of
record. “A” endorses the Promissory Note to “B”, who endorses it to
“C”, who endorses it in blank (for delivery to Freddie Mac) and acts
as servicer on the loan.
“A” executes and records a mortgage assignment to “B”, “B” executes
and records a mortgage assignment to “C”, and “C” executes an
unrecorded but recordable assignment to Freddie Mac, which is held in
the Note file while “C” services the loan.
Example 2: MERS
“A” is the original lender on the Note and original mortgagee of
record. “A” endorses the Promissory Note to “B”, who endorses it to
“C”, who endorses it in blank (for delivery to Freddie Mac) and acts
as servicer on the loan.
“A”, “B” and “C” are all MERS participants and “C” is duly registered
as the servicing interest holder in the mortgage on the MERS system.
A mortgage assignment from “A” to MERS was recorded while “A” held the
Note. The absence of a mortgage assignment from “A” to “B”, or “B” to
“C”, or “C” to Freddie Mac, is not a violation of the Guide
requirements."
For further discussion, please see:
http://www.bankrate.com/finance/mortgages/mortgage-sold-to-a-servicer.aspx
http://answers.google.com/answers/threadview/id/164168.html
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
