[\/\/ayne]

The banks outsource the riskier loans to cheaper, more crooked servicers. I believe they also do that with widows and orphans - they have a good change the financial wizard is the one who died and they can more easily flim-flam the survivors. I got hit soon after I became a widower. I was able to beat them but my research showed a huge problem in America.

You can see the size the problem by the huge amounts of complaints to State Attorney Generals. And that's just the tip of the iceberg. Many victims don't make complaints after the crooked mortgage servicer steals their house through a crooked foreclosure. They figure if the judge let them do it there's nothing they can do.

I don't want these crooked entities to ruin our wonderful housing boom so I hope a legal boom falls on them.

[Georgia Girl 2]

First you need to understand the mortgage industry. The banks are the servicers not the lenders. They lend the money for the initial loan then immediately sell it to a large investor like Fannie or Freddie. You make your payment to them but they no longer own your mortgage.

The banks don’t have the money to continue holding a mortgage because they need the money back to loan it out again on new loans next month. Occasionally they will sell to another investor who may service their own loans in which case you might get a letter telling you to start sending your payment to so and so because your loan has been sold.

Most of the time if you are making your payment to Chase, Wells Fargo, Bank of America, Fifth Third etc. They are just servicing your loan. They sold it to Fannie or Freddie 30 days after you closed.

Unless the servicer also owns the loan if they take the house back due to non payment they have to assign it over to the entity that holds the note. They don’t get to keep it.