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#2138144 - 07/14/17 11:45 AM 3rd party purchase of 2nd lien foreclosure
jtedora Offline
New Poster

Registered: 07/14/17
Posts: 3
Hello,

We have a third party who has purchased a property through the foreclosure of a junior lien. The sale was subject to all other liens and mortgages.

We now have the successful bidder calling the bank to ask what is needed to pay us off and have our mortgage discharged.

The question at hand is how do we provide this information without running afoul of disclosure regs?

Any help would be appreciated,

Jesse Tedora

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Mortgage Servicing Rules
#2138610 - 07/18/17 02:37 PM Re: 3rd party purchase of 2nd lien foreclosure [Re: jtedora]
John Burnett Offline

10K Club

Registered: 10/27/00
Posts: 36288
Loc: Cape Cod
You can provide them with a payoff figure without divulging the account number. The names of the mortgagors are already public record. I don't see a problem here.
_________________________
John S Burnett
BankersOnline.com
Professional Compliance Nerd since 1976.

"Illegitimi non carborundum"

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#2140211 - 07/31/17 11:44 AM Re: 3rd party purchase of 2nd lien foreclosure [Re: jtedora]
jtedora Offline
New Poster

Registered: 07/14/17
Posts: 3
Thanks,

I seem to recall some carve out in Dodd Frank that allowed senior mortgagors to release balances to junior mortgagors but I can not find it.

Any chance you can point me in that direction also?

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#2140508 - 08/02/17 02:17 PM Re: 3rd party purchase of 2nd lien foreclosure [Re: John Burnett]
jtedora Offline
New Poster

Registered: 07/14/17
Posts: 3
Thanks,

I seem to recall some carve out in Dodd Frank that allowed senior mortgagors to release balances to junior mortgagors but I can not find it.

Any chance you can point me in that direction also?

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