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-   -   who forecloses in new bill ? (http://www.early-retirement.org/forums/f28/who-forecloses-in-new-bill-39204.html)

mathjak107 09-29-2008 04:02 AM

who forecloses in new bill ?
so now that the gov't will buy these loan packages who forecloses on the defaulted homes? if a homeowner dosnt pay and the gov't bought that debt as part of a package now what?

OAG 09-29-2008 05:37 AM

The owner of the Mortgage. I assume that the Federal Government, as the owner, will attempt to workout a payment plan with the borrower (or new buyer?). That appears in the draft and allows the Government to cut the balance on the loan and or the interest rate. Really going to go over big with the neighbor who is paying his or her Mortgage at the CONTRACTED rate and amount.

ChrisC 09-29-2008 06:56 AM

It's a bit more complicated than that. The short answer is that the loan servicer calls the shots. See the last dozen or so posts in this thread:http://www.early-retirement.org/foru...eal-38929.html

The Government, if it owns all of the bonds in a given series or tranches of an asset securitization, does not "own" the mortgage. But as bondholder for an entire series of bonds it might be able to influence the loan servicers.

al_bundy 09-29-2008 06:58 AM

before the bond holders had to OK any mortgage modification. Once the government buys up the mortgages they can tell the servicers how much they are willing to modify the loans

expect to see every loan in trouble be modified over the next few years as the government buys loans, modifies them and then sells them off and buys more loans

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