Investors Not Happy With Obama’s Loan Modification Plan
Investors are not happy with Obama’s new mortgage rescue plan.
Investors are asking the government to amend the $75 Billion Housing Plan. Investors are protesting that the new plan violates their rights to sue against loan servicers who collect on these loans and also perform the mortgage modifications on these loans. Loan modification San Diego homeowners may be affected.
The investors have a lot at stake. They currently hold billions of securities backed by home loan mortgages. They are concerned that stipulated rights in their contracts will not be enforced under the governments new loan modification programs.
Investors have met with Treasury officials to resolve these issues and are not happy with the results of these talks. The government is working on a resolution to satisfy the investors.
The main problem here is that there are approximately 1.9 trillion in mortgages that were bundled into securities and sold to investors worldwide. The mortgage servicers that manage these loans would be more willing to do a mortgage modification on these loans before they would be willing to modify the loans they own outright.
What this means if you are looking to do a loan modification San Diego homeowners program on your own home mortgage loan. You may have a lender that would rather offer a loan modification to mortgage borrowers who’s loan is owned by one of these investors. So, in other words it may be difficult to negotiate a loan mortgage modification on your own loan if your mortgage servicer also owns your mortgage outright.
The program was designed to help 4 million homeowners through the loan modification process, unfortunately if the government does come up with some resolutions it may not be possible for some unfortunate homeowners to get their loans modified.
