AboutJames Setters Expertise I can answer questions regarding residential home mortgages for both purchases and refinances. I have extensive experience in both prime, sub-prime and real estate investing. I approach mortgage lending with a focus on a client's overall financial life and worked for more than 10 years as a financial advisor and planner in the investment and insurance field. My specialty is debt elimination and providing systematic, disciplined plans that show families how to become debt free in 6-11 years, including their mortgage, with no increase in their monthly payments. Feel Free to ask me how!
I have access to over 130 of the nation's leading mortgage lenders and most national banks.
Experience I have more than 17 years of experience in financial services, and have worked in mortgage lending since 1992.
Organizations National Association of Mortgage Brokers.
Ohio Association of Mortgage Brokers.
Home Buiders Associations.
Education/Credentials Life Accident and Health Licensing, passed exam.
NASD Series 6 and 63 licensing, passed exam.
Licensed Mortgage Broker
Expert: James Setters Date: 7/16/2008 Subject: General
Question Hello,
We recently lost our home to Novastar Mortgage. We found out Novastar had a discrimination suit against them in MD. We tried to save our home on 3 different occasions to no avail, because Novastar refused to give us a pay off amount. Since the house has been in sheriff sale and was sold back to Novastar. Our mortgage has been transferred to Saxon Mortgage. We have been getting payment coupons from them. Yesterday we went to trial for ejectment. Novastar's attorney showed the judge a deed that they were the owners. the judge would not rule on the case and put the trial in recess pending further documentation. My question is, Do you know if Novastar Mortgage filed bankruptcy? And if they did file bankruptcy, when? Also if they filed bankruptcy, did they open under a different name-Saxon Mortgage? Finally, If Saxon mortgage is a separate entity, when a mortgage company assumes a mortgage do they also own the property? If the property went to Sheriff sell does it have mortgage on it. We received a debt cancellation because of the sell of the property, so how can Novastar sell a mortgage that does not exist to Saxon? Does Saxon now own the property? If they own the property, Saxon should file for ejectment instead of Novastar, correct? I know it is a lot to ask, but we are at the end of our rope. Any information will be extremely helpful in taking down a TERRIBLE MORTGAGE COMPANY WITH NO MORALS AND UNFAIR BUSINESS PRACTICES. THEY HAVE DESTROYED MANY PEOPLE WITH THEIR PREDATORY LENDING. Thank you for any help you may be able to offer. I will anxiously be awaiting your response.
Respectfully,
Toni
Answer Toni,
Thank you for the question. Your question is really more of one that is legal in nature, but I will try to answer the parts that apply to lending.
When a loan is "sold" it could actually be two scenarios.
One, it could be that the lender, in this case, Novastar, sold the servicing rights, and not the actual loan. This might account for why the rep in court was representing Novastar.
Two, they could have sold your loan, as a security directly to the new lender, Saxon mortgage. If it was a NPA (non-performing asset) I would be inclined to think that the loan was NOT sold, but only the servicing rights. I cannot imagine Saxon would buy a loan that was not performing.
I looked to see if Novastar had filed for bankruptcy protection, but I cannot confirm they did or didn't. All I can see is a large amount of speculation on the issue.
Even if Novasar filed bankruptcy, it does not remove their interest in the real estate you pledged as collateral for the loan. Bankruptcy provides protection from THEIR creditors, it will not dissolve the company.
As far as I know, Saxon Mortgage and Novastar were not related, but you can check in to it on the internet. A great research tool is Reference USA. You may able to access it through your local library website.
Lastly, my advice would be to seek legal counsel. Be sure to ask what the rules are about obtaining a payoff number. My thoughts are that as part of the Fair Credit law, a creditor must provide that number when asked by the debtor. In foreclosures you do have a right of redemption through the process, and in some cases even after the foreclosure action is complete.
Additionally, look on the internet for class action suits against Novastar. I know you are not the only family in this position, there was a reason the judge did not rule on the case and ordered a continuance. Perhaps the reason lies there.
