Chances Are That You Are Making Your Mortgage Payment to Someone Who is Just Servicing The Loan for Someone Else.

Doing Jacksonville short sales we have come to realize that most homeowners have no idea who they actually owe money to.  So you took out your loan with Bank of America or Suntrust or Wachovia or some other bank and you think that means that they are the entity that owns your loan?  This is often not so.  In the past the law has only required notification to the homeowner if the servicer, that is the person collecting and processing your loan on behalf of the investor, has changed.

Your loan may have been sold to Investor A who sold it to Investor B who then turned it over to Investor C.  Or your loan may have been sold to Investor A who packaged it and sold off pieces to Investor B through Investor Q.  Sometimes your original lender will sell it to the investor after you go late (not sure if this is with disclosure or not).  If you are one of the lucky ones, your loan is just owned by Fannie or Freddie.  This uncertainty and selling off of loans  is something that can often lead to trouble if you are facing a Jacksonville Short Sale or are in Pre-Foreclosure. 

Depending on who the investor on your loan is, your Jacksonville short sale can be either easy or very hard.  Many times it's impossible for the homeowner to figure out who owns their loan.  The servicers are usually very elusive when it comes to the topic, simply referring to the party who owns your loan as "The Investor."  Most of the talking heads in the customer service department have no clue what is going on.  Many times this means that the deal will just take longer to get approval.  Other times it means that your deal will be wrecked and you will go spiraling into foreclosure.

The Truth in Lending Act was modified at the end of May and will now require notification when the owner of your loan changes (instead of just the previous requirement of notification of a servicer change).  In theory this is a great development, it remains to be seen how this is going to change everything.  So far we are seeing that the servicers are still being elusive and many homeowners are still in the dark about who owns their loan.