One of the most common reasons we hear from clients in regard to their mortgage modification efforts is that they meet the requirements for a modification under HAMP but they are denied a permanent modification due to an objection by the "investor." The question clients keep asking is who are these investors and why do they have the ability to deny my mortgage modification request?
In the early 2000's, large portions of mortgages in the U.S. were combined by financial institutions into large investment pools called securitized trusts. Legally these trust are their own entity but they must be managed by a trustee who makes decisions on behalf of the trust. The financial institutions then sold bonds from the trust to investors, namely mutual, pension funds and other large investment funds.
While the trustee is charged with making decisions on behalf of the trust they are almost never the actual entity servicing these mortgages. In almost every instance the trust contracts with a mortgage servicer to provide mortgage related servicing for these loans and trustees for the largest trusts contend that the authority to decide when to modify a mortgage rests with the servicer of the loans. While the investors maintain that the servicers are the ones denying the HAMP modifications some housing counselors have estimated that between 10% and 40% of HAMP denials are blamed on investors.
A new article published here, details several accounts of homeowners who have run into this same problem
As a homeowner you do have rights and defenses to avoid a Florida foreclosure. If you have had your mortgage modification denied or if are currently, or will be in the near future, facing a Florida Foreclosure Lawsuit you should contact a Jacksonville Foreclosure Lawyer to discuss what defenses are available to you in order to save your home.
