No, the mortgage on this house is not held by Fannie or Freddie Mac and its not FHA or VA. Deutschebank is the plaintiff in this matter...
So, question is, if bank is walking away, then what happens to the mortgage? Seems really bad that the banks can drag me thru legal crap for 2 years where I have paid $$ in legal fees, be awarded the judgment for foreclosure and then can just drop everything and walk away? Seems odd....
I have a gut feeling there is more to this....
Mike H wrote:
If the mortgage is held by Fannie or Freddie Mac, or if its an FHA or VA
insured loan, it could be that the new guidelines on foreclosure make it
not worthwhile to continue the foreclosure, but rather to do a "loan mod"
which would reduce the principal and interest down to a point where you
could keep the property. The banks today really don't want anymore property
and the government is covering their equity loss on the loan by way of the
This is just a theory, I'd call the lenders attorney and get the info as soon
as possible. A big change was made April 28, 2009 but the details are not
yet clear. It appears the banks will be "writting down" the principal to 97.5%
of market value and modifying the loans so the borrower will have equity
again. (It's called a partial claim on mortgage insurance which allows the
borrower to keep the property.) This is exactly what we've been asking for
and it appears the April 15 protests are bearing fruit!