When you sign a document that says the bank will service your loan, or will sell your loan, it has nothing to do with you!
If you loan is sold it is for the following reason:
*Bank has multimillion dollar line of credit
*Line of credit is used to fund/finance residential or commercial mortgages
*Bank is required to pay interest on line of credit
*Bank comes close to using most of the line of credit
*Bank realizes it must pay back the line of credit so it can lend more loans!
*Bank creates a portfolio of residential or commercial loans
*Banks SELLS this portfolio.
*Banks use proceeds from the sale of tis portfolio to pay down the line of credit
*Bank can now close more loans!!!!
When you lock in the interest rate on "your" loan, you are asking bank to hold part of their line of credit for you so your loan can be funded. If you cancel the loan or are rate shopping and are asking more than one bank to lock in the loan you are costing the banks money and are driving rates up(slightly).
Foreclosures are LOANS THAT CAN NOT BE SOLD AND TIE UP THE LINES OF CREDIT!
That is why banks do NOT want your property. Yes there are some smaller banks that may pose as banks but are really bad bad real estate investors abusing the banking industry to further their FLIPPING schemes. These Flipper Banks almost always are shut down by regulators and 99.995 of the owners wind up in Jail with a new neighbor named Bubba!!!!!!!!!!!!!
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