Question re: Loan Servicer vs. Loan Owner - Loan Modification Forum

Liza09 · 09-26-2009, 10:55 PM

OK, I'm confused. I have several properties I'm trying to get mods on. My GMAC loan is owned by Wells Fargo, my Aurora loans are owned by GMAC. Why doesn't the owner of the loan service it's own loan? Am I missing something here?

B Stevens · 09-26-2009, 11:06 PM

Real Estate laws prohibit a bank from using their customer's money to buy a house they sell and keep on their books. That is the easy answer. Something about a monopoly and price fixing. I am sure a more sophisticated answer will surface.

Liza09 · 09-26-2009, 11:14 PM

I've noticed some people talking about "in house" modifications. What are they talking about if the servicer doesn't also own the loan?

B Stevens · 09-26-2009, 11:38 PM

I believe, and correct me if I am wrong, it is a modification to the loan without permanently changing the principle or length of the loan.

Example: Wells Fargo did an in house modification by lowering my interest for 60 months. They did not have to get the investor's approval.

09-26-2009, 10:55 PM	#1 (permalink)
Liza09 Member Join Date: Aug 2009 Posts: 25 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Question re: Loan Servicer vs. Loan Owner OK, I'm confused. I have several properties I'm trying to get mods on. My GMAC loan is owned by Wells Fargo, my Aurora loans are owned by GMAC. Why doesn't the owner of the loan service it's own loan? Am I missing something here?

09-26-2009, 11:06 PM	#2 (permalink)
B Stevens Senior Member Join Date: May 2009 Posts: 124 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Question re: Loan Servicer vs. Loan Owner Real Estate laws prohibit a bank from using their customer's money to buy a house they sell and keep on their books. That is the easy answer. Something about a monopoly and price fixing. I am sure a more sophisticated answer will surface.

09-26-2009, 11:14 PM	#3 (permalink)
Liza09 Member Join Date: Aug 2009 Posts: 25 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Question re: Loan Servicer vs. Loan Owner I've noticed some people talking about "in house" modifications. What are they talking about if the servicer doesn't also own the loan?

09-26-2009, 11:38 PM	#4 (permalink)
B Stevens Senior Member Join Date: May 2009 Posts: 124 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Question re: Loan Servicer vs. Loan Owner I believe, and correct me if I am wrong, it is a modification to the loan without permanently changing the principle or length of the loan. Example: Wells Fargo did an in house modification by lowering my interest for 60 months. They did not have to get the investor's approval.

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode