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How To Tell If Your Home Mortgage Loan Has Been Affected By Securitization
What is Loan Securitization
A securitized mortgage loan is basically a mortgage backed asset or bonds secured by mortgages. Maybe 95% of the loans that were processed from 2003-2008 were affected. People were approved for loans that could never really afford them later causing the largest amount of foreclosed homes in history.
The mortgage loans of this time has many mistakes that savvy lawyers have exposed and now that more and more judges are aware of these mistakes more and more banks are forced to grant modifications. Not to mention the 5 bank 26 billion dollar settlement the Obama administration entered. Here are several issues with your mortgage if you have received in the during 2003-2008..
· Robo-signing- People that are paid to sign hundreds of mortgage (false) documents without review.
· Unfair business practices
· False Investors and Beneficiaries
· MERS Violations
Why Foreclosure Defense Is Needed Today
Knowing what happens with your mortgage will make foreclosure defense clear. Many property owners have pursued mortgages and fought for their home and never understood what happens to a mortgage month to month or year to year. Knowing the process will allow you to more clearly make better decision when you need to modify.
Definition of Mortgage Securitization
When mortgage loan debt is pooled together and sold as a bond to investors, which is back by mortgage receivable.
Securitizing mortgages is fairly new. It began in the past decade. Since then the game has changed and the home owners have been paying the price.
What Happens To Your Home Mortgage Loan
If your mortgage loan has not been packaged and sold to investors it is a rare case. Securitized mortgage loans are big business and make many very wealthy. You may have been wondering why you never know who owns you mortgage. Here is just one journey your mortgage makes.
1) Mortgage Loans Sold for discount
2) Bundled and Sold to Investors
3) Investor not Lender in control of mortgage
4) Companies called mortgage servicers collect payments and issue default notices.
5) Payments (recievables) back the bonds.
6) If payments aren’t made the mortgagor will be foreclosed on.
A mortgage defense is what you will need to expose the fact that your lender no longer owns your mortgage. Can you see how your bank may not have your best interest when you’re pursuing your modification?
If your bank does its analysis and find that they will yield higher return by foreclosure, you can bet you will not get your modification for your securitized loan and if you do you will certainly be paying for the service on the back end or giving a measly amount causing you to end up foreclosing up the road.
In a court of law the lender must prove that they own your mortgage loan to collect or foreclose. Of course a bank without this proof will forgive a balance or grant new terms (modification) without a problem .
A foreclosure defense approach will give your attorney and bank hard facts about the status of your mortgage that will force the bank to happily agree to favorable terms or be sued.
Don’t Believe Me? Answer These Questions?
1) Why do you call your bank for a modification and can’t get through? The banks don’t make money giving modifications; so why hire a staff and throw away more money.
2) Can you get a consultant when you want to open an account? Opening accounts mean the bank is receiving money to make more money.
3) Why doesn’t the bank hire more people in the mortgage modification department? My guess is that it will cost more money and they are in business to make money.
4) Why does it take so long for a modification to be granted? If you wait long enough you will give up your home and run out of time still losing your home. The bank will drag out this process.
If you have a securitized mortgage you may be able to pay less of your mortgage. Your lender can not make you pay for something they no longer own. Does that make since? Good. Hopefully this hub has got you thinking about why you should know everything about your home mortgage loans history. Get a Free Document Review and Attorney consultation.