I need some help right away???

Hello to all;

I have a question: My aunt was just informed that her mortgage company has just sold her loan to another mortgage company and now her mortgage has increased almost $700.00. Is this legal???

Also, she was informed that without complying they will foreclose on her property. Is it possible that I can do a short sale with this property. She said she would like to sell it to me. Can a short sale be performed in this situation? Also can short sales be performed with a hard money loan for a person with not so good credit like myself? Any advice on thhis situation will be greatly appreciated.


Someone correct me if I’m wrong, but the only way I know of a mortgage increasing like that is if it is an adjustable rate mortgage or if the homeowner was already behind on payments and the inflated mortgage payment is a forbearance of sorts to bring the loan current. Otherwise the new mortgage company would be breaking the law with these actions.

A short sale can be attempted on any loan. That doesn’t mean the bank will accept one. I personally believe that purchasing a short sale for cash yourself, then selling to the end buyer is the best way to do it. Obviously most people don’t have the cash to do that, so a hard money lender or like is the most common option available.

This sounds suspect, you should contact your original mortgage servicer to determine the veracity of this claim. Of course FN might be onto something if your Aunt was behind in payments and part of the $700 was catch-up funds. I seem to recall a similar post on this site some months ago where a borrower received a new servicer letter which really turned out to be a devious method of getting them to refinance their mortgage.

That, or it could be a flat out scam. Although rare I have heard of people sending out letters like this fraudulently in an attempt to have people send them their mortgage note payment rather than to the proper lien holder.

Just because the mortgage was transferred or sold, they cannot legally increase the payment unless she agreed to ARM. Otherwise it IS suspect and I would call the original mortgage company to confirm that her mortgage was sold, transferred.

That sounds rather hokey to me. I would check this place out. It may be a scam.

It could be an arm that defaulted to its max payment cap, or maybe even a negative amortorization loan!