Today we are talking about who owns your Elk Grove loan and why it makes a difference. As you probably know the bank you are making the payments to seldom actually own the loan or note as it is referred to. When the bank does own the note that type of loan is called a portfolio loan because it is held in the banks own investment portfolio. For the most part your bank is more than likely acting as the servicer meaning they made or bought the loan or note and sold the debt to an investor but is getting paid to service the loan you know – collect the payments and take a fee for doing so.
Why is this important to know? It’s important because with all the good intentions of the Federal Government and their attempts at mortgage relief – none of it makes any difference if the investor does not participate in that particular program.
Who are the investors you ask? Good question. The two largest investors are Fannie Mae and Freddie Mac both Government Service Entities or GSE. Fannie and Freddie are quasi private corporations backed by the federal government – that’s right – me and you. Other investors could be mortgage backed securities or union pension funds and the like. He are the facts about Fannie and Freddie. Backed by our tax dollars, they hold approximately 60% of all home loans and foreclose faster than any private investor. Getting an extension on the foreclosure is next to impossible.
Several times we have received our Elk Grove short sale approval less than a week before the foreclosure date and had we not escalated the file, Fannie would have foreclosed on the property. Never mind that it costs them an average 20 -25% more to foreclose than to accept the short sale. On a $200,000 short sale that’s $50,000 of our tax dollars wasted had they not given us 30 days to close the escrow. Pretty crazy.
I tell you this because if you are considering a Elk Grove short sale, it is important to know who the investor is. If you have a GSE backed loan and a notice of default you had better get going fast or you will lose the property to foreclosure. You can find out real easy. Go to Fanniemae.com or Freddiemac.com, enter your information and it will tell you if the loan is Fannie or Freddie backed.
To get a better idea of when your Elk Grove home will be worth what you owe, log in to www.shortsaleandloanmod.info for a free estimate or call me today for a free no obligation consultation. Call me today and sleep better tonight; you’ll be glad you did