Who is the Trustee in a Mortgage Back Security and Why is that Important in Foreclosures?

In other posts we have traced how your bank, say Whitney Bank, may have sold your bank loan to another financial institution before the ink was dry on your mortgage and note.

Your home loan was pulled into something called a mortgage backed security which is in turn sold to investors.

The financial institution that represents the investors in a mortgage back security is called a trustee.

By law, that trustee of the mortgage backed security pool can’t have any contact with you the borrow. What’s confusing is the foreclosure is usually brought in the name of the trustee of the financial institution that represents the investor of the mortgage backed security. There can be three or four players down that mortgage stream.

That makes it harder for you to get in contact to try to work something out. There is someone called an intermediary or a mortgage loan servicer who might be the right person! Do you need help with your mortage, and want to find out if bankruptcy is the right thing for you to do? Give us a call today.

 

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