Mortgages are loans which are used to buy a home. They can range from small amounts to very large amounts, and can be very confusing for individuals who have not studied real estate. It’s confusing enough dealing with all of the ins and outs of a mortgage, but you should at least be able to answer one question; Who owns my mortgage?
When trying to pursue actions such as trying to get a loan modification, this is one major topic that is brought up over and over again.
Keep in mind that the servicer of your loan (ie the institution that takes your payments and does all communication on the account) may be different then the actual entity that owns your mortgage. The mortgage servicer processes your monthly mortgage payments and does all the leg work for the investor. In addition to that, it takes care of other loan associated tasks like dispersing escrowed tax and insurance payments to your local county governments and insurance companies.
To find out who your mortgage servicer is, simply look on your monthly mortgage statement. In the case of pursuing a loan modification, the servicer can have full authority (in most cases) to make decisions on the account as they’ve been empowered to act on behalf of the investor.
Fannie and Freddie Cycle:
Finding out who owns your mortgage takes some work on your part. To understand more, it helps to understand what happens to the mortgage once you’ve made your purchase. Once you’ve closed on your mortgage, the loan would probably have been sold to Fannie Mae or Freddie Mac, which account for well more than half of all residential real estate. Your mortgage is then packed together with countless other mortgages or “Mortgage Backed Securities (MBS)” and then sold to investors.
So who owns my mortgage?
If the servicer wasn’t given proper authorization, they may not disclose this information with the borrower. It’s also possible that the servicer is just completely unaware of who the current owner is. In this case, there are other means of locating this information and you will want to start with a written request to your mortgage servicer.
You can also search a system called Mortgage Electronic Registration System (MERS). MERS is a registry outsource for the majority of mortgages and you may be able to determine the investor of your mortgage using their search options here. We also recommend you search your local county recorder’s office or website and search under property records.
Borrowers can use the links below to determine if either Fannie Mae or Freddie Mac may own your mortgage:
– Does Fannie Mae own your loan? www.fanniemae.com/homeaffordable
– Does Freddie Mac own your loan? www.freddiemac.com/avoidforeclosure
If these options did not work, borrowers may want to consult with a local agent or real estate attorney if this information is crucial. However, you will always want to be very cautious when working with attorneys and agents if you are researching foreclosure prevention options. Be aware that charging upfront fees for loan modification services or help you avoid foreclosure is illegal.