Mortgage Schemes: "Zombie" Mortgages
Mortgage Pyramid Schemes / Liens: America's Wholesale Lenders / Countrywide, transferred to Litton Loan Servicing (Ocwen Financial Services), transferred to Dyck O'Neal (Original Amount $4,640 increased to +$50,000)
Also See X Account: @ZellerDonna
Result:
We reviewed several possibilities regarding the Dyck O'Neal lien. For one, we discussed refinancing with a Mortgage Broker. We also checked with several Realtors, Attorneys and submitted complaints to State agencies. All who did reply agreed that our only option might be to settle with Dyck O'Neal.
Fortunately, as a result of our own research, we submitted a request for assistance from the Consumer Financial Protection Bureau (CFPB) and the Better Business Bureau (BBB). We received a response from the CFPB stating that Dyck O'Neal had agreed to satisfy the lien within 30 days in the county of record (Dauphin County, Pa). Dyck O'Neal decided that satisfying the lien was the best approach in helping us to achieve our credit goals. The lien was cleared on June 3rd, 2025. Thank you!
Somehow, First Choice Home Buyers learned that the lien had been cleared and, on June 16th, 2025, filed a Praecipe of Writ of Summons / Breach of Contract Action / Lis Pendens. Judgment pending.
However, the contract with First Choice Home Buyers, LLC, dated May 8, 2025, electronic signautre stamped May 9, 2025. First Choice Home Buyers, LLC has a clause in their contract, as follows: If buyer and seller cannot get clear to close from title within 15 business days of this agreement signing then this agreement is null and void.
The clear to close from title could not be done within 15 business days of the agreement (excluding weekends and holidays); thus, the agreement, upon which the lis pendens was entered, was null and void.
(See also firstchoicehomeinvestors.blogspot.com regarding the relevancy of having the Dyck O'Neal lien and Lis Pendens satisfied)
(See also X Account: @ZellerDonna.)
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Summary:
Our first mortgage was satisfied. We thought that our second mortgage, originally underwritten by America's Wholesale Lenders/ Country Wide, was satisfied / discharged during a bankruptcy in 2014. However, that second mortgage, balance of $4,640, was transferred from America's Wholesale Lenders / Country Wide to Litton Loan Servicing (Litton Loan Servicing was sold in 2011 to Ocwen Financial Corporation) to Dyck O'Neal; and recorded as an uncollateral lien. Note that the transfer to Dyck O'Neal was done during the bankruptcy and that Litton Loan Servicing had listed the original total amount, not the balance, as a P&L Write-off.
We never heard from Dyck O'Neal until we received a letter a few years ago. There was no balance showing. Another letter, received about a year ago, shows a +$50,000 balance. However, the top of the letter indicated that the information could be ignored if the amount had been discharged in a bankruptcy.
Ultimately, in order to sell our house in Pennsylvania, we needed to clear the Dyck O'Neal lien. We worked with an Account Rep from Dyck O'Neal to do so.
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