My question. What/how/why is the borrower subject to the provisions of this pooling and servicing agreement? When/where did I agree to such? My closing docs doesn't refer to it in any way. And in fact, the PSA trumps the provisions of HUD/FHA.
You are not party to it and you are not subject to it. The servicer is subject to it.
If A and B sign a contract, B cannot then have a separate contract with C and obligate A to that contract which overrides the provisions of the contract between A and B which A knew nothing about. This would cause chaos in contracts.
What am I missing?
While your ABC scenario is true it is a fallacious premise for your argument.
How are you obligated beyond your contract? You are dissatisfied with requirements which your servicer must apply to modification of the contract
not to the original contract itself.
In seeking a modification you are asking to change the contract. The lender/servicer can certainly choose their own lending practices, under the law, such as limiting the amount they are willing to lend.
Perhaps it would be better for you to consider refinancing if you qualify.
Well Cabinetmaker, I'm sure anyone who can qualify to refi would choose that option versus messing around with a loan mod.
I follow your logic for the most part, but I think there's room for a new, interesting argument by smart defense counsel. And that's especially so when servicers pick and choose which parts of the PSA they want to apply and which parts they want to ignore.
Thanks for commenting.