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B of A just transferred my 2nd mortgage to Greentree Financial, what does this mean for me? Looked up Greentree online and could not find any positive comments about them. From what I could piece together, looks like B of A is sending a lot of 2nd mortgages over to Greentree this month. Anyone know why they are doing this?
I've poked around the internet a little bit on this, appears that B of A is only sending over 2nd mortgages on houses that are underwater. So if the homeowner decides to try and short sale or go into foreclosure, they can turn the mortgage into an unsecured loan.
Used to having my loans bought and sold, this just seems different to me. Greentree appears to be more of a debt collection agency than a mortgage company or loan servicing company. Even the mortgage statement that they sent me stated that they are a debt collector.
Banks can only hold property deeds for so long under SEC rules. This is why you have debt collectors such as Green Tree which I believe may be owned by Grow Financial but not sure, I believe Grow Financial is not a typical Bank, they come under Credit Union and savings institution rules, not sure if they come under the same guide lines as B of A in reference to SEC. Anyway what Banks have to do is churn the properties before they run out of time according to the SEC rules, IF NOT, they have someone else purchase the security so "they" can churn the properties, foreclose resell. This is the only logical reason behind selling the securities to a Debt Collector to do the foreclosing. This is how credit card companies settle unsecured debt obligations, sell the debt! It's no different with Banking Institutions, other than "Real Property" under a lien. Unsecured debt such as HELOCs unsecured junior liens become real touchy when it comes to legally taking back real estate. A junior lien 2nd 3rd 4th mortgages are liens that stand in line waiting for the foreclosure process. Example: You have a property with $300k 1st and a $200k second. If the property is sold for say $250k in foreclosure their is a default of $50k on the 1st and subsequently the junior liens gets NADA, because the over all debt is really $500k. What happens if the same institution owns both junior liens or a HELOC along with the 1st? So lets say the supposed junior lien in this case is not a legitimate 2nd? Let's say the 2nd is really a HELOC that is NOT secured by a note? Oh boy now we got real problems because the real property is NOT SUBJECT to foreclosure if it's junior lien is really an unsecured (HELOC) so that leaves only the 1st security handling the process of foreclosing, who owns the security? Does it make a difference? NO! A HELOC is nothing more than a signature loan in all actuality. So if an institution could just right off the second as a non-performing debt obligation in the form of a HELOC problem solved for the bank, but that loss becomes a capital gain to the person in foreclosure in the form of a 1099c to pay taxes on. So instead of the institution never collecting on the unsecured debt it's conveniently transferred to the owner in the form of "forgiveness of debt" and instead of owing the institution holding a loser of a loan, you owe the IRS through the magic of transfer of debt obligation in the form of a forgiveness of debt leaving you still in default on your 1st with the original institution, unless the security has been sold, which most likely it has, the name changes but the obligation remains. Isn't that nice? So who are these buyers of debt, Institutions that are in affiliation with the Banking System to get rid of toxic mortgage waste and out from under SEC rules? It's all legal so we can't say the institutions are screwing the homeowner out of their property. If it were not legal they wouldn't get away with it. But why are more judgments being reversed after a foreclosure but before the court house sale date? In my opinion, because the originators of those debt obligations can't sell real estate in a market as dismal as this market is in, so "they" request a vacancy of judgment from the ruling Judge and the ruling judge with an over loaded docket approves and the homeowner sits in the house wondering why didn't they sell the house on the court house steps after losing in court? It' easy "they" can't recover their loss without a market, THERE IS NO MARKET! The Banks owe the American Tax Payer almost $1.5 Trillion in tax payer relief authorized between October 2008 and summer of 2009 called a recovery, "back from the brink" under two different administrations. Since then we have seen the purchase of treasuries and toxic exchange of debt obligations, money printing that has no backing, building wall street investment market into a huge profit for wealthy investors and the real estate market along with mortgage applications at all time lows, no jobs and general frustration with all parties. WHY? Good question and foreclosure is NOT THE ANSWER. Think about this for a second. 401ks began in 1986, if you were 30 years old and signed up for a 401k that payout would mature in 2016, do we think those retirees in this market are not going to want their 401k retirement funds beginning in 2016? Where is Banking going to get the money to pay out that first flood of 60 year old retirees, unless most of them lost their jobs in the past five years or were bought off with early retirement? You think investment banking has the money to pay out that flood of retirees coming to maturity in 2016. If you do you better get out a calculator because it's IMPOSSIBLE to pay out the demand with real money. Now what happens, transfer the investment to bonds, right? You think? Are we ready to trust a US Treasury backed by an ever losing dollar through higher prices? Something has to change and the first place to begin IS STOP THE FORECLOSURE and allow the market to correct itself. The properties in default will eventually sell again and the Banksters will place good loans on those properties and people will earn their way in life and not think they are entitled to free stuff like what the banks think they are entitled to free foreclosures. Just my uneducated two cents.
Banks can only hold property deeds for so long under SEC rules. This is why you have debt collectors such as Green Tree which I believe may be owned by Grow Financial but not sure, I believe Grow Financial is not a typical Bank, they come under Credit Union and savings institution rules, not sure if they come under the same guide lines as B of A in reference to SEC. Anyway what Banks have to do is churn the properties before they run out of time according to the SEC rules, IF NOT, they have someone else purchase the security so "they" can churn the properties, foreclose resell. This is the only logical reason behind selling the securities to a Debt Collector to do the foreclosing. This is how credit card companies settle unsecured debt obligations, sell the debt! It's no different with Banking Institutions, other than "Real Property" under a lien. Unsecured debt such as HELOCs unsecured junior liens become real touchy when it comes to legally taking back real estate. A junior lien 2nd 3rd 4th mortgages are liens that stand in line waiting for the foreclosure process. Example: You have a property with $300k 1st and a $200k second. If the property is sold for say $250k in foreclosure their is a default of $50k on the 1st and subsequently the junior liens gets NADA, because the over all debt is really $500k. What happens if the same institution owns both junior liens or a HELOC along with the 1st? So lets say the supposed junior lien in this case is not a legitimate 2nd? Let's say the 2nd is really a HELOC that is NOT secured by a note? Oh boy now we got real problems because the real property is NOT SUBJECT to foreclosure if it's junior lien is really an unsecured (HELOC) so that leaves only the 1st security handling the process of foreclosing, who owns the security? Does it make a difference? NO! A HELOC is nothing more than a signature loan in all actuality. So if an institution could just right off the second as a non-performing debt obligation in the form of a HELOC problem solved for the bank, but that loss becomes a capital gain to the person in foreclosure in the form of a 1099c to pay taxes on. So instead of the institution never collecting on the unsecured debt it's conveniently transferred to the owner in the form of "forgiveness of debt" and instead of owing the institution holding a loser of a loan, you owe the IRS through the magic of transfer of debt obligation in the form of a forgiveness of debt leaving you still in default on your 1st with the original institution, unless the security has been sold, which most likely it has, the name changes but the obligation remains. Isn't that nice? So who are these buyers of debt, Institutions that are in affiliation with the Banking System to get rid of toxic mortgage waste and out from under SEC rules? It's all legal so we can't say the institutions are screwing the homeowner out of their property. If it were not legal they wouldn't get away with it. But why are more judgments being reversed after a foreclosure but before the court house sale date? In my opinion, because the originators of those debt obligations can't sell real estate in a market as dismal as this market is in, so "they" request a vacancy of judgment from the ruling Judge and the ruling judge with an over loaded docket approves and the homeowner sits in the house wondering why didn't they sell the house on the court house steps after losing in court? It' easy "they" can't recover their loss without a market, THERE IS NO MARKET! The Banks owe the American Tax Payer almost $1.5 Trillion in tax payer relief authorized between October 2008 and summer of 2009 called a recovery, "back from the brink" under two different administrations. Since then we have seen the purchase of treasuries and toxic exchange of debt obligations, money printing that has no backing, building wall street investment market into a huge profit for wealthy investors and the real estate market along with mortgage applications at all time lows, no jobs and general frustration with all parties. WHY? Good question and foreclosure is NOT THE ANSWER. Think about this for a second. 401ks began in 1986, if you were 30 years old and signed up for a 401k that payout would mature in 2016, do we think those retirees in this market are not going to want their 401k retirement funds beginning in 2016? Where is Banking going to get the money to pay out that first flood of 60 year old retirees, unless most of them lost their jobs in the past five years or were bought off with early retirement? You think investment banking has the money to pay out that flood of retirees coming to maturity in 2016. If you do you better get out a calculator because it's IMPOSSIBLE to pay out the demand with real money. Now what happens, transfer the investment to bonds, right? You think? Are we ready to trust a US Treasury backed by an ever losing dollar through higher prices? Something has to change and the first place to begin IS STOP THE FORECLOSURE and allow the market to correct itself. The properties in default will eventually sell again and the Banksters will place good loans on those properties and people will earn their way in life and not think they are entitled to free stuff like what the banks think they are entitled to free foreclosures. Just my uneducated two cents.
Bullet points, bro.
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