Loan Modification? Heads the Bank wins — Tails You lose!
The banks don't want to modify loans! Statistics show that fewer than one-third of all eligible mortgages have been permanently modified. two-thirds of all eligible mortgages have not been permanently modified.
Negotiate your own loan modification or get help from an experienced professional, but either way, you need to know three things:
- who owns your loan? — Do they have the legal right to foreclose and take your home?
- is foreclosure or modification in the best interest of the owner of your loan?
- do you have a predatory loan? — once predatory always predatory.
Just knowing the answers to these three questions, can increase your odds of getting an affordable, permanent loan modification to 70% or better!
Approximately 62 million loans were securitized in the United States, so the odds are that your loan was securitized. That means that it was bundled together with several thousand other loans, transformed into a security (think stocks or bonds) by a Wall Street investment bank (think Goldman Sachs), and then “sold” to a securitized trust that acts on behalf of the certificate holders (investors) entitled to an income from all those monthly payments. That also means that the bank you are dealing with is acting only as a “servicer” for the securitized trust.
Servicers work for and are contracted by the trustees of the securitized trust and have the authority to act on behalf of the trust and the certificate holders, but servicers do not want to modify those loans, and since servicers typically operate independently of and without trustee supervision, servicers can and often do what is best for themselves — and what's in your Servicer's best interest is almost never your best interest!