Mortgage Servicing Rights: A Cash-Cow for Servicers But A Nightmare for Consumers.

 



A recent trend in the mortgage lending industry is the sale by banks and mortgage companies of the lucrative servicing rights on the loans in their portfolios. Special servicers like Nationstar and Ocwen are taking over the collection of mortgage payments, processing of modifications and the foreclosure and collection of delinquent accounts. This is probably a positive development  as  the banks and mortgage companies have been doing a horrible job at it.

 

Unfortunately, the assignment of servicing rights on a mortgage loan can cause the consumer much grief. I can't count the number of times that a client has complained that they were current on their mortgage until the servicing rights were transferred and they suddenly had to make payments to another company. Invariably in the transition a payment would get lost or delayed and then the collection letters would start, late charges applied and suddenly a perfectly good loan was in default.

 

A Chapter 13 bankruptcy is often the only way to cure a loan that is in default. Those who do not qualify for Chapter 13 must file Chapter 7 and reaffirm the debt or surrender their homes and get a discharge of the mortgage debt. These filers who surrender their homes, however, should carefully monitor their credit after their discharge as the original lender, the original servicer and the successor servicers quite often will continue to report the account to the credit bureaus. And successor servicers will often act like the loan is still collectable. With all these assignments it is not unusual to find  the original lender or servicer and the successor servicer reporting to the credit bureaus on the same loan and pulling credit reports when there is no longer any account relationship. This inaccurate reporting can significantly delay the recovery of a filer's credit score.

 

So, if you get a notice in the mail that the servicing rights on your home mortgage are being assigned to a new company be wary, monitor your credit reports carefully and if you find something that doesn't look right, seek professional help..

 

For more information go to our Website or visit us on Facebook.

 

 

Plastic Gods

 

PLASTIC

 

They came from everywhere

Over here and over there

The mail, the phone, in the mall

Unsolicited, one and all

 

Get them one, two or ten

Don’t wait—pick up the pen

It’s a simply wonderful game

All you do is sign your name

 

Now jump for joy, and yell, hooray!

Cause baby they’re on their way

Dillards, Penneys to name a few

Visa, Mastercard and Amex Blue

 

Do it now, live the American dream

Stand right up and let out a scream

Whatever you want, no money down

You’ve got credit all over town

 

Sit back, watch your dreams come true

Not a worry now, only pennies due

For Moses it was manna from the Lord

But for us today, plastic is our sword

 

Now its silver, gold and platinum too

Macy’s, Sears to name just two

Cars, clothes, a ten day cruise

Gambling, clubs and lots of booze

 

You’ve got it all and then some more

Until the bills flood in the door

It cannot be, I didn’t spend that much

Just a few odds and ends and such

   

Eighteen, Twenty, Twenty-four

Interest, interest, bills galore!

Oh my God, it’s all a scam

To steal my life, I’m in a jam

 

Collectors call day and night,

Every balance out of sight

I can’t sleep, or even think,

Go to work—I need a drink

   

My lover scorns me, yells and screams

God, what happened to all our dreams?

Letters, calls, demanding blood,

From my lover’s eyes there is a flood

   

Now she’s gone, couldn’t take the heat

I’m here alone, tired and beat

Bankruptcy. Is that all that’s left for me?

I can’t believe it, I just didn’t see

   

But now I do, clear as glass

I fell in love with cold, hard cash

Visa, Mastercard, Amex Blue

Lucifer got his due

 

copyright William Manchee

Visit us on Facebook or at our Website.

What the critics said about Plastic Gods.

"This is easily one of the most exciting fiction novels of the year. . . ."

"Plastic Gods is a suspense packed thrill ride through the worlds of power politics, the legal system, and finance. This is a very well written book that draws the reader into the storyline and doesn't let them go until the very end. I had to read the entire book at one setting to see how Matt would resolve his problems. ... An excellent story, masterfully done, and recommended for those who like a good suspense story. Harold McFarlen * Amazon.com * Top 50 Amazon Reviewers (#39)

---

"Non-stop plotting action makes Plastic Gods’ a book you can't put down...."

"As an expert at bankruptcy laws, and having practiced it in his field for a quarter of a century, author William Manchee has penned his second exciting novel featuring lawyer Rich Coleman and his son, Matt. . . . While the subject matter might seem daunting and somewhat uninteresting, such isn’t the case. In fact, credit cards and enormous debt makes for a unique premise, for many of us are caught in that trap already. Well-drawn characters and a nearly perfect balance between narrative and dialog make this ‘financial thriller’ a winner." Denise Clark, Denise's Pieces Book Reviews

---

---

 ". . . Manchee offers the reader a peek into a side of banking and credit most of us never realized might exist."
One of Manchee’s best Plastic Gods is a nail biter. From the opening paragraphs when Rich Coleman reflects over his own life and muses about his son’s surprising decision to become an attorney through the whole action packed tale we follow Matt on his headstrong journey into a life he never expected. Matt’s impulsive determination carry him and those with whom he associates into jeopardy, lethal danger and a crassness the naïve young man never suspected existed Molly Martin, Booklore.co.uk

---

---

 "Action aficionados will not be disappointed, and although the book is a work of fiction, its theme is tantalizing."
". . . a surprising and unpredictable ride that keeps you in constant suspense as what is around the next bend. . . . Action aficionados will not be disappointed, and although the book is a work of fiction, its theme is tantalizing. It is sure to leave many a reader thinking about some of the unsavory banking practices pertaining to credit card marketing and what is looming behind closed doors of these institutions. Robert P. Goldman, The Best Reviews

The Speech I Never Gave

A Must Read For Young Adults

A young man came up to me at a book signing a year or two ago and asked me if I was the man who wrote Plastic Gods. I acknowledged to him that I indeed was that man. He smiled and then proceeded to tell me what a great book it was and how much he'd enjoyed it.

My signing had been a little slow, so his kind words lifted my spirits. It was gratifying to find out my book had meant so much to this young man. As I stood waiting for the next person to stroll by I thought about my own youth, decades earlier. Graduating second in my high school class at Buena High School in Ventura, California, I was asked to address my fellow graduates. Being barely 17 at the time and having lived a sheltered life, I wasn't a fountain of wisdom at the time, so I didn't really know what to say. Somehow I stumbled through my speech but it had been mediocre at best. If only I'd of known then what I knew now. I started to formulate in my mind what I would have said to my fellow classmates had that been the case.

Fellow seniors, I stand before you today to warn you of a great peril that you will face the moment you step out into the world on your own. It's a danger that will threaten your health, your happiness, your marriage and even your very freedom. The reason this risk is so dangerous is that it is perfectly legal. There are no laws to protect you, no warnings from family and friends, and you won't know that you are a victim until its too late.

What I'm warning you about today is the credit trap--the lure to buy now and pay later, to live above your means, to accumulate possessions of every sort that you don't need. It's an unfortunate fact of life that our economy is driven by credit and you will be expected to do your patriotic duty and help drive the economy forward. This pressure will be manifested by a deluge of credit card applications, offers of financing for new fancy cars, a barrage of advertising trying to lure you into buying expensive home, clothes, cosmetics, travel packages, you name it.

You won't feel any pain the first few years after you fall into the credit trap. You'll be enjoying everything you've purchased on credit. Minimum payments on credit cards are low and you can draw on your credit cards or credit line if you come up short. It won't be long though until you'll find yourself in serious trouble. Lets say you have $50,000 of family income. If you did a budget you'd discover that you were probably spending $70,000 or more. That means you're going in debt at the rate of $20,000 per year plus interest.

Interest at first may be reasonable, but the first time you miss a payment it will be jacked up to 28% and every time you go over your limit or make a payment late you'll be charged outrageous fees in addition to the high interest rate. Soon, in addition to your car and house payment you'll have credit card debt exceeding your car and house payment combined. You'll live with this as long as you can, borrowing from Peter to pay Paul, but eventually it will be too much and the only way out will be bankruptcy.

It's an established fact that financial stress is the leading cause of divorce. After a few years when creditors start to call, your credit goes in the dumpster, and it gets difficult to even pay basic bills. You'll start blaming your spouse, arguments will ensue, and love will turn to bare tolerance. It's very common for bankruptcy to be followed by divorce. Some law firms offer a combination package, bankruptcy and divorce all for one low fee.

So, you've been warned. Don't fall into the credit trap. If you do, at best you'll lose your financial freedom and at worst you'll end up alone in the bankruptcy courts. Don't live above your means. The only credit you'll ever need is for a house, a car and perhaps your children's education. Pay cash for everything else.

Now here's my final piece of advice. If you follow it you'll never experience the tragedy I've just described. When you get your first job and go out on your own, prepare a budget and follow it no matter what. Change it whenever your income changes, and put in a budget item for savings. Ten percent is the amount you should save each month. Do this without fail and you'll preserve your financial freedom, greatly improve the chances of having a successful marriage and go a long way in insuring your future happiness and well being.

That's the message I wish I'd of given my fellow students back in 1969. I know I would have benefited from it. You see, I fell into the credit trap just like millions of other American's have done over the years and suffered greatly on account of it. It's only been in the past few years that I've managed to escape and become debt free.

I wrote Plastic Gods as a way to communicate this message to readers in a way that would be entertaining but still effective. The young man I met tonight wasn't the first person who's thanked me for Plastic Gods, but it felt good to know yet another person had benefited from reading it.

 

Get Plastic Gods now at Amazon.com or download the audio version at Audible.

 

Follow Manchee & Manchee, PC on Facebook.