[lbo-talk] Selling debt & informing debtors

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Wed Aug 19 21:26:03 PDT 2009



> 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?

There's nothing requiring it, at least in the US. The servicing of the loan *is* really your "credit relationship" ... if you're to send your payment somewhere else, you'd be told that. In the mean time, money is fungible, so the other details aren't really relevant.


> 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?

The court will demand the paper trail, and so should you. Some people have found that the paper trail is bogus and they don't have to pay. It's not likely, but it has happened.

http://www.consumerwarningnetwork.com/2009/02/17/homeowners-rallying-cry-produce-the-note/

/jordan



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