Transfer To REO Process in Servicing Director Collections Does Not Create the History Transaction of Foreclosure - Non Cash

Transfer To REO Process in Servicing Director Collections Does Not Create the History Transaction of Foreclosure - Non Cash

After you process a 'Transfer to REO' transaction in the Collections application Foreclosure/ChargeOff screen, you may find that the expected history transaction called 'Foreclosure - Non Cash ' does not appear in the Loan History.

You may also find that this missing history transaction causes there to be no related General Ledger entries.


Workaround:

The most likely cause of this problem is that the loan may already have been paid off at the time the Transfer To REO was processed.

The payoff causes the primary status of the loan to be 'Pd Off', preventing any new history transaction to be created.

This is by design.

 

A solution would be to set up a specific new investor for this purpose (perhaps calling it REO), transfer the loan into that investor, and then do a Transfer to REO.

This would keep the balances on the loan if you so desired.

ArticleNumber:

000060303