Understanding who owns your loan is more important and more challenging than someone may think. It is common place to assume that since a payment is made to Chase, Wells Fargo, Bank of America or Green Tree that that company owns the loan when in fact those companies are loan services. In rare cases, those fore mentioned companies may in fact own the loan but that?s typically not the case.
With a homeowner?s loan there are two distinct parties involved: 1. the loan servicing company and 2. the loan owner/investor. The loan servicing company receives the homeowner?s funds on behalf of the loan owner/investor and the loan owner/investor is the company who actually holds the deed of trust. In the example above, Chase is the loan servicer for Fannie Mae who is the investor.
Why is it Important to Know the Loan Owner?
Most people don?t give the loan owner a second thought and when being current on payments there is really no need. However, in the event a homeowner has to short sale or is facing foreclosure then knowing the investor has a lot of value. Each investor has its own guidelines, policies, and decision making processes by which short sales are approved, how moving/relocation incentives are structured, or given at all, and/or if the seller needs to be in contract with the investor prior to listing a home as a short sale.
Knowing the investor is not just for homeowners but real estate brokers, short sale negotiators, and real estate attorneys as well. It can make all the difference in how timely a contract is approved.
3 Places to Find out Who Owns or Insures Your Loan
1. Fannie Mae: https://knowyouroptions.com/loanlookup
2. Freddie Mac: http://www.freddiemac.com/mymortgage
3: FHA or HUD Insured: http://www.ehow.com/how_6030875_do-loan-fha-insured_.html
It is highly important to become educated about your home loan because in case of emergencies knowing that information can make all the difference.
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