The Tampa Tribune explains why loan modification isn’t all it’s cracked up to be.
Rafael and Tina Castillo thought their mortgage lender must have made a mistake when it sent them their loan modification paperwork this month. The monthly payment of $1,700 had been reduced to $737.41 for the next six months…. But then came the kicker. September’s payment: $10,303.11.
Obviously, that bank isn’t really interested in helping out the Castillos. But why? Because their loan isn’t owned by that bank, it’s owned by a bunch of faceless “investors” who bought it on Wall Street:
Most of Wells Fargo’s loans are owned by investors, and those investors control the modification terms.
In other words, if the investors don’t want to modify your loan, there’s nothing the bank can do about it. Now, more than ever, it’s important to find out who owns your loan.
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