Who is the Mortgage or Loan Servicer that You May Need to Contact in a Foreclosure?

Are you confused yet? In many earlier posts have traced how your original mortgage from the Bank of America may have been sold to another financial institution like Country Wide, who in turn, packaged your incomeMortgage or Loan Officer mortgage back security was sold to investors, Player Three.

The mortgage backed security is a pool of home loans that were sold to investors and there is a trustee that represents the investors in that mortgage backed security.

Your homeowners monthly payment generates the payout to all of these investors and there is an intermediary who collects the monthly payments from the home owners, handles the escrow accounts and distributed those funds to the investors. That’s called a mortgage or a loan servicer.

The servicers don’t always have clean hands if you default. Why? The services often owe the lower priority debt or second mortgages that can be wiped out in the foreclosure and guess who handles the foreclosures? The mortgage or loan servicer.

Higher priority investors in this mortgage backed investment want to foreclose quickly or whatever is left of the investment. Servicers, will have their investment wiped out in the foreclosure. They have little incentive to modify a loan if you are making payments and depending on the picking order in the mortgage backed security, they can be wiped out, you can see this conflict of interest makes it incredibly difficult to work things out if your mortgage is part of a mortgage backed security.

If you are facing foreclosure, and need help, bankruptcy may be an option for you. Give us a call today, Sunshine State Bankruptcy, your St. Pete bankruptcy lawyer, at 1-877-352-8192.

 

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