Be Good To Your Money Bulletin http://ezezine.com
HOME BUYERS BEWARE!!
Congress has forced mortgage lenders to hold a larger reserve, so banks
and mortgage companies are selling your mortgage loan to payment
processing companies via notes. Notes? The processing companies are
buying the mortgages for a % of the value. Example: A $100,000 mortgage
could be bought for $75,000. The banks get the cash and the processing
companies collects the payments.
The problem--If you are underwater with your mortgage (owe more than
the value), your best chance of refinancing is with your "current"
mortgage company. The payment processing company is not a mortgage
company (or bank), so that will make it almost impossible (if not
impossible) to refinance. Plus, the payment processing companies are
charging you to do business online.
Also, they are less likely to sell your loan, because they need to
recoup the discount they paid for your loan, in this example $25,000.
So beware, if you get a notice in the mail that your loan has been
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