Discussion on Loan Modification Process Improving at BOA an

Schumpeter Reincarnate Joined: 24 May 2008 Posts: 172755

http://mandelman.ml-implode.co.....servicers/

Dud? Joined: 24 Mar 2012 Posts: 23 Location: FL

I am confused about the settlement and principal reductions. I thought most loans are GSE owned, like owned by Freddie and Fannie! Freddie and Fannie don't do principal reductions. Even after the mortgage is assigned to the servicer, the servicer only owns it if they foreclose. Sorry to hear you have received that many emails...may be you got a minute to read "The Umbrella" one.

Posted: Thu Sep 20, 2012 4:22 am

So I guess its hopeless for my long standing situation because I am dealing with Freddie Mac and Wells Fargo - not BOA...
Is that why the help offered evaporated over a month ago?
If my situation was favorably resolved, it would free up time to fight with about one of the only attorney's offices in the state of Idaho.

Yes - I have been offered the opportunity to use my first hand experience to help 2 law firms that have joined forces to fight for us homeowners.
These 2 law firms are trying to help homeowners that are disabled and have severely disabled children who's homes have been remodeled - not for new kitchens, but wheelchairs and medical care needs.
WTF does a bank want with a house like that!!!

Martin - it's me Peg Butcher in Idaho -remember me? The homeowner who works with special needs children?
Please help; me so I can help these law firms help others. Please...

Dyn-o-mite! Joined: 09 Oct 2008 Posts: 307

OMG... Peg... Could you please email me your phone number? Thanks.

Dyn-o-mite! Joined: 09 Oct 2008 Posts: 307

Hi Gulfresident...

You are correct, GSE loans are not part of the National Mortgage Settlement's principal reductions. The only loans that are considered eligible for such principal reductions are those either owned by the bank, for example BOA owns about 20 percent of its portfolio, or loans owned by private RMBS trusts and are "delegated" to the servicer.

(Non-delegated loans are those that servicers are not permitted to modify without express permission of the owner.

Also, your statement, "Even after the mortgage is assigned to the servicer, the servicer only owns it if they foreclose," is not really correct. The servicer never "owns" the loan, although I understand why you think so. It's because of the assignment, right? If it's a GSE loan, the servicer is assigned the loan in order to foreclose, but that doesn't mean they own it.