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I received HSBC Notification of Lien Release letter on mortgage that i didn't reaffirm and I'm not sure what to do?

Warren, MI |

I was discharged from Chapter 7 Bankruptcy in Jan 2010 and I didn't reaffirm my 1st or 2nd mortgage from HSBC and stop paying in March 2013. In July 2013 they sent me a letter that they would start foreclosure proceedings and then got another letter saying they sold to Springleaf. I advised HSBC & Springleaf that I moved out of the property in Sept. 2013 and that I would turn over keys and they said they didn't want keys. Now I get a letter of Notification of Lien Release from HSBC saying they are not going to do foreclosure, now I'm confused. Any suggestions?

Attorney Answers 5

  1. Best answer

    I would have to review the paperwork. It may be HSBC is abandoning, or the rights and lien are with Springleaf. You will need to confer with an attorney with the details. I suspect you still have title to the property.

    To the PROSPECTIVE client, please call myself or another attorney for your choice with more detaiils and an appointment. My PRELIMINARY answer to your question(s) is for general purposes and based upon what little information you have conveyed. It is based on such limited information that the general answer should never be relied as a reason for your action or inaction. My response does NOT establish an attorney-client relationship and such may only be established by mutual agreement, and the signing of a written retainer agreement, which will generally require payment for our services, as this is what we do for a living and, just like you, we must get paid for our work.. .

  2. I suggest you review this with the attorney who handled your Chapter 7. If HSBC has sold the loan, then they may be just making clear they are out of the picture. However I think what you really need to review is that you are still on the deed. You may decide that it is your best interest to get the home out of your name , either by short sale, transferring the to a community land bank, etc. so long as the home is in your name you may cited for code violations, for example.

    I am not your attorney unless you and I have signed a retainer agreement. What I am saying is not legal advice. Do not act on this information without engaging my services, this is for consideration only.

  3. It is common that mortgage companies sell their mortgage (generally in bulk.) I assume Springleaf is now the first mortgagee. You have been discharged on the debt and you moved out. Springleaf will likely foreclosure but will be of no consequence to you other than have a foreclosure on your credit record.

  4. Why not hire a realtor to sell? A foreclosure will just trash your credit even more than the bankruptcy. Hope this perspective helps!

  5. I recommend that you show the Lien Release form to your attorney, local title company, or real estate professional. Are there real "blue ink" signatures on the document? If so, you may have the actual release of lien. You may be able to record/register/file that document with your local Register of Deeds office. On the other hand, it may only be a notice, but the lender may have recorded the document at the Register of Deeds office for you. You may have only one mortgage on that property, and you may have sufficient equity to sell it.

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