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I'm a little confused. I don't know a great deal about this mortgage business, but maybe I should. My wife is the smart one when it comes to these things. My wife and I have lived in our home for about 21 years now. We plan on paying off the house when she retires in 3 years. My question is about the note. We currently make payments to X bank. Wouldn't they be the ones to hold the note? I know it's changed hands (banks) three or four times since we've owned the home. I mean, how can a note get lost? If another bank takes over, doesn't the note and deed just follow?
By the way, we've never missed a house payment since we've lived in the home. We're very fortunate, I know. The reason might be that we didn't buy more home than we could afford.
Thanks for answering this dummies' questions.
Who you make your monthly payments to is the servicer. They send out the statements, collect the money, harass you if you dont pay... they then forward your money to the end investor but they keep a small piece for servicing the loan. The end investor could be a teacher retirment fund, could be you in your 401k or a wealthy asian investor. They hold the note.
I wasn't trying to solve any problems. Just throwing out what I consider a normal chain of events.
1. Bank agrees to loan money and buyer agrees to borrow money.
2. Buyer breaks the loan agreement.
3. Bank takes the house and whatever loss comes along with it.
4. Buyer loses the house and gets their credit score crushed.
5. Depending on where you are the bank possibly comes after the buyer for the difference and at some point in the future possibly has to pay taxes on that loss.
It's a business transaction.
That's all well and good... and you have to admit quite idealistic considering all the news coming out.
At the end of the day - following these steps will do absolutely nothing because they've supposedly been following your 5 step plan and it's blown completely up. On BOTH sides of the "business transaction"!
Who you make your monthly payments to is the servicer. They send out the statements, collect the money, harass you if you dont pay... they then forward your money to the end investor but they keep a small piece for servicing the loan. The end investor could be a teacher retirment fund, could be you in your 401k or a wealthy asian investor. They hold the note.
Thank you. That's interesting. So why is it important that we know where our note is at?
Ok, I read the link and understand a little more about it. At least it answered my question about transfer of the note from bank to bank. It's not always transfered to the the other bank. I understand how this can effect a borrower that's underwater and where the bank is trying to close on their home without legal means to doing so. But how this pertains to someone that doesn't have an issue with continuing to pay their loan, I have no idea. Why would it be important, say, for someone like us to know who has/owns the note?
Last edited by turbodiesel4x4; 10-13-2010 at 03:03 PM..
I honestly could care less about the whole documentation issue. Let the banks fight amongst themselves who really owns the house. I sure as hell know who doesn't own it. It's the person who stopped making the payments.
Does anyone question that the buyer got funds to purchase the house? I don't care that the documentation of that is messed up. I really don't. Get the hell out of the house you stopped making payments on.
I REALLY wanted to rep you on this one, but I need to spread it around. But I wish what you said could be sung from the rooftops.
Thank you. That's interesting. So why is it important that we know where our note is at?
As one investment group "gobbles up" another, then splits off some assets and so on, the physical notes are often lost or misplaced, then 2 or more entities may claim to be lien holders, one fights the other for the rights to the money the servicer was paid it gets tied up in court and you are stuck with a cloud on your title until it gets resolved, because it is your physical home that backs the loan, so the potential resale of your property could then be near impossible to sell until it is fixed. While these messes are being cleaned up there are chains that are broken and proof of who the heck the money or payoff(s) were suppose to go to messes it all up.
Personally I think the servicer should be stuck with that liability not the home owner - they are being compensated for the service, but you would think they would need a certified copy of the physical note proving lien holder before they could legally send you a bill or file credit dings, send insufficient payment charges, eviction notices etc.
Does anyone question that the buyer got funds to purchase the house? I don't care that the documentation of that is messed up. I really don't. Get the hell out of the house you stopped making payments on.
If it was me, I probably would get out, but if it it was my neighbor, I'd rather they live in it until someone could prove who the **** owned it. The housing market is in the tank if theres going to be "something free or handed out" I'd rather see it go to a neighborhood at ZERO additional cost to the bank. An empty home in my experience has horrible repercussions for itself and the community - it takes tons of money to even slow that process but if a pair of banks can't figure out who owns it, someone might as well be squatting there until it is sellable.
As one investment group "gobbles up" another, then splits off some assets and so on, the physical notes are often lost or misplaced, then 2 or more entities may claim to be lien holders, one fights the other for the rights to the money the servicer was paid it gets tied up in court and you are stuck with a cloud on your title until it gets resolved, because it is your physical home that backs the loan, so the potential resale of your property could then be near impossible to sell until it is fixed. While these messes are being cleaned up there are chains that are broken and proof of who the heck the money or payoff(s) were suppose to go to messes it all up.
Personally I think the servicer should be stuck with that liability not the home owner - they are being compensated for the service, but you would think they would need a certified copy of the physical note proving lien holder before they could legally send you a bill or file credit dings, send insufficient payment charges, eviction notices etc.
Thanks, eric. While I'm at it, I might as well ask one more question. As I stated earlier, we'll be paying our house off in 3 years (or at least that's our plans). Will there be a document proving that we own our home, and how does all of that work? Thanks!
That's all well and good... and you have to admit quite idealistic considering all the news coming out.
At the end of the day - following these steps will do absolutely nothing because they've supposedly been following your 5 step plan and it's blown completely up. On BOTH sides of the "business transaction"!
Idealistic? It's a contract. Nothing more, nothing les. Again, I'm not trying to solve the housing crisis. If the bank doesn't want to exercise their right to foreclose more power to them. But I certainly don't hold it against them.
Thanks, eric. While I'm at it, I might as well ask one more question. As I stated earlier, we'll be paying our house off in 3 years (or at least that's our plans). Will there be a document proving that we own our home, and how does all of that work? Thanks!
I'm sorry for veering off topic a bit.
You'll get a release of lien mailed to your home a few to several weeks after payoff.
Idealistic? It's a contract. Nothing more, nothing les. Again, I'm not trying to solve the housing crisis. If the bank doesn't want to exercise their right to foreclose more power to them. But I certainly don't hold it against them.
Yes, extremely idealistic... Please allow me to explain.
First off, it's an improperly executed contract with fraudulent paperwork. What do you tell people on this board when they start threads complaining about entering into a bad RE deal? I caught one of your recent posts in another thread here where someone is losing out on a house because their accepted bid was passed over in favor of a higher one. No properly executed contract, you're SoL. Sorry, bud - you didn't do your homework and you didn't cross those Ts.
For someone who's all about the letter of the law, I don't see how you are so cavalier about what these banks did. They can't exercise their right to foreclose because they committed fraud, NOT because they don't want to. Yet, you hold nothing against them and expect these folks to pack up and leave willing. If that's not idealistic, I don't know what is... I appreciate you aren't trying to solve the housing crisis, but your philosophy of "get out" is only going to make things worse. Empty zombie houses with overgrown lawns are not going to help any neighborhood. There's a difference between not trying to solve anything and contributing to the mess.
I would like to see something done, too... and just to be clear, I'm not advocating people staying in homes without paying or given to them free. Yet, what I'm still struggling with is what would be happening to me or you should we have forged documents and committed fraud when it comes to legal documents. Especially when you consider the amount of "money" involved. We'd be facing jail time and ruined. I'm not cool with that as much as I'm not OK with people living in homes they don't own for free.
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My wife is the smart one when it comes to these things. My wife and I have lived in our home for about 21 years now. We plan on paying off the house when she retires in 3 years. My question is about the note. We currently make payments to X bank. Wouldn't they be the ones to hold the note? I know it's changed hands (banks) three or four times since we've owned the home. I mean, how can a note get lost? If another bank takes over, doesn't the note and deed just follow?
