Did Your Servicer Lie To You About Denying The Loan Modification
Okay this story not only affects the Santa Maria real estate market and upside down mortgage home loans but many seeking a loan modification. I know that this is kind of complicated so I am going to first break it down first, and we are just going to keep it simple AS POSSIBLE not get all complicated here. You got a loan through Bank of America or Country Wide and what they did is they packaged all these loans and put them in what is called Mortgage Backed Securities Or MBS. Now the investor can be a pension fund or a Mutual fund etc etc. Now what confuses most people is that it does not say on your Mortgage Statement that T.Rowe price is who now owns your mortgage or is part of a thousand other mortgages all pooled together it can still say Bank of America or Wells Fargo etc. So the bank you thought you had the loan with is really just servicing the loan they handle the paperwork, and the accounting all that good stuff. They make money on servicing the loan for the investor handling on the little details that go into taking care of the loan. Which can be a lot of work when you think of the thousands upon thousands of accounts the investors are just not set up to do it so that is why your statement still says Bank of America and so your bank actually becomes the servicer of the loan.
So now lets go forward in time and times are tough the interest rate has changed and you are trying to get loan modification because you just cannot keep up with the payments anymore. So you are dealing with Wells Fargo and little did you know that Wells Fargo has to go to the investor to get approval to on your loan modification and this is where the games begin.
First let me say I am not a big fan of the big banks and there games nor am I a big fan of the bailout. Since we did bailout the banks with billions of dollars and they were able to maintain the ability to continue to do what they felt like. The HAMP program has proved to be anything but successful but for more reasons than one. Please keep in mind that getting a loan modification can be done via the Bank OR THROUGH THE OBAMA PLAN. I hope that some of this information can be of use to someone and help someone out in trying to save their home from a needless foreclosure. Now if you do qualify under the guidelines for the Obama plan and you have an INVESTOR- OWNED MORTGAGE they have to give you a loan modification unless it is spelled out in the investor agreement no modifications allowed but a third of all modifications are investor loans. CLICK HERE FOR OBAMA GUIDELINES FOR LOAN MODIFICATION. Sad to say that there are homes for sale in Santa Maria that are foreclosed on that possibly were forclosed on needlessly and only because it was in the best interest of the servicer.
The problem is that many Servicers are starting to state that the investor will not allow a modification and turning people down for the loan modification even when they could of been offered one. Servicers collect more money when you go to foreclosure by charging fees and passing the costs on to the investor. So its not really in thier best interest to help you get that loan modification, sure they do some here and there but overall they do a poor job of it. The sad thing is that the servicer is in control and making decisions that are not in the best interest of either the investor or the homeowner. Now what makes things even more frustrating is if the homeowner tries to contact the investor … he is clueless as to who the investor is and the bank (servicer) will not help but just make things more complicated.
Here is a great article on this topic. CLICK HERE
Next Blog I will give you a few resources and things you can do to fight back if you still the have fight in you the banks can seriously wear a person down and even give you the impression that there is nothing you can do but if you still have some fight in you I will try to post a few resources that may be able to help you.
If you have any questions about buying a Santa Maria home for sale in the Santa Maria Real Estate market or any properties on the Central Coastand need to get a loan in Santa Maria, CA or any where in the state of so I California not just on the Central Coast, so I can do California home loans, and first time home buyer loans, as well as refinance home loans and just plain simple mortgage loans. So please contact me by sending me an email at: GenePerez@GMSLoans.net
I do also service all the nearby communities and other markets such as the Santa Ynez real estate market, Nipomo Real estate market, Arroyo Grande real estate market, Grover Beach Real Estate Market, and all other surrounding areas regarding the homes on the Central Coast.
my goal is to provide you with resources you need. I can also help in getting the financing for your home. If you have any suggestions or questions in how I can provide more or better
information please let me know. I have been helping my clients for the last 15 years on the Central Coast, Gene Perez – 805-448-7101 , DRE 01321588
Important Disclaimer: Questions and answers provided on this website and by Gene Perez is to be considered general information, and is not intended to substitute for informed professional financial, tax, legal, investment, accounting, or other professional advice.
This blog and its content is copyright of Gene Perez 2010. All rights reserved. Any redistribution or reproduction of part or all of the contents in any form is prohibited other than the following: you may print or download to a local hard disk extracts for your personal and non-commercial use only. You may copy the content to individual third parties for their personal use, but only if you acknowledge Gene Perez as the source of the material You may not, except with our express written permission, distribute or commercially exploit the content. Nor may you transmit it or store it in any other website or other form of electronic retrieval system without obtaining Gene Perez’s
Other articles you might like;