[lbo-talk] Selling debt & informing debtors

D. T. cochrane dtc at yorku.ca
Wed Aug 19 21:16:52 PDT 2009


I just mean the direct relationship between the holder of the debt and the debtor.

If I take out a loan from CIBC and they sell it (along with 5000 other loans) to Citi am I informed that my creditor is no longer CIBC (although they may continue to service the loan) but Citi?

The reason I'm asking is because I'm wondering how a debtor can navigate whatever evidence is used to show that the party initiating a foreclosure is the legitimate debt holder. If I thought my debt was to CIBC and suddenly I find out that some law firm, who acquired by loan from Citi, is foreclosing on me, how do I know that is legitimate?

Troy

On 20-Aug-09, at 12:04 AM, Jordan Hayes wrote:


> Troy asks:
>
>> When a lender sells debt to a third party that then
>> securitizes it and further sells it on, is the debtor
>> informed of these changes in the credit relationship?
>
> What do you mean by "changes in the credit relationship" ...?
>
> If I loan you $10 today and you agree to give me $1/month for the
> next year and in month #3 I tell you to instead of sending the money
> to me that you should send it to my bookie, is there a change in our
> credit relationship? If the bookie uses the $1 you send to finance
> a revolution in a jungle somewhere, are you to be told?
>
> What exactly is the credit relationship you're talking about?
>
> /jordan
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