Re: SP Servicing Foreclosure

Select Portfolio Servicing sounds like a mortgage servicing company not a lender. Probably fancy name for a relatively small servicer, or to disguise their corporate roots. They could be doing servicing for their own portfolio bought on the secondary market, small, mom and pop, or hard money lenders. Your 10% mortgage rate was suggests a HML with a whole lot of points added up front.

Foreclosures wipe off (not out) all liens against a property except prior liens, so if you can’t or won’t pay off prior liens you would not be eligible for a deed-in-lieu from any lender. Few troubled debtors qualify for DIL, because typically they have other debt in arrears in additional to their mortgage. If the property is in a deed of trust state, it would be a non-judicial foreclosure. Time to auction date can be anywhere from three weeks to a few months depending upon the state. If it’s a judicial foreclosure state, it will take longer depending upon the state. Liberal states tend to be more generous to borrowers dragging out the inevitable.

More info could be helpful, but would probably verify my suspicions.