It used to be simple: When you wrote a check for your mortgage, it went to the bank that gave you the loan. But now that check most likely makes a journey of a thousand miles, according to this MSNBC article. Because of changes in the banking and mortgage industries, thousands of investors around the world get a piece of your monthly mortgage check. The article explains how this change happened and how the market for 'mortgage-backed securities' has grown to $6.8 trillion. It's a good read if you have an interest in knowing who owns your mortgage.
Evidently, so many hands dipping into the pot has created a large part of the financial mess that we're in. It's sad that greed had led to the destruction of our ability to provide the "good life" for future generations.
There are a lot of horror stories out there about various mortgage companies scamming people and selling
their mortgages to another company. Well, I want everyone to know about a really good, reliable and dependable mortgage company I have had for the past 26+ years. Crown Mortgage Company assisted my sister and I in 1982 when we had both been divorced and had no place to go but up. Our rate was high but we had little to no credit and the property was only $42,500. Crown secured adequate insurance coverage and thru the years when we were struggling with loss and change of jobs, illnesses and the ravages of life, Crown worked with us and never sold our mortgage when we supposed they would. These are honest people who care about their clients and we have recommended others to them who say the same. They were in business when they took a chance on us and are still going strong today. Everyone is not out to scam you but if you are looking for a reputable company in Chicago, go to Crown Mortgage Company. They follow the rules and look out for you.
the dirty little secret that no one talks about is that most mortgages in the last 6 or so yrs involve way over priced houses. the lenders do not want to diminish or write down the principle to make the mortgage affordable. it doesn't matter how much you lower the interest rate, its the overinflated
principle that is killing people. "modifications" to mortgage do not address a reduction in the principle. the default rate proves it. many mortgages are upside down and no longer worth what people are paying on the house.its all greed. better to have the consumer pay you something for 30 yrs then walk away.
even companies that modify, add another 10 yrs to the loan! who are they kidding.
I agree that without adjustments to principles we'll continue to have problems. The best thing readers of this site can do to improve their situation is make incremental home improvements over time to raise the value of your home.