While dealing with real estate comps and property values investors find many property deals to invest in. Once the papers have been signed is when the rubber hits the road. There are many reasons why mortgages end up in default but I wanted to share two tips with you that you may want to keep in mind should you need it.
Many banks have begun the practice of foreclosing on homes that they do not own the mortgage on. Should you find yourself in this situation the first thing you need to know is who actually owns the mortgage note. Under the Helping Families Save Their Homes Act passed in 2009 borrowers can call the bank to the carpet, so to speak.. and make them prove they own the note.
Sending a letter to the servicer of the note asking who the actual holder of the mortgage is your first step. Reviewing the transfer of ownership paperwork is your next step into tracking down ownership. These will put the wheels in motion to make the servicer provide proof of ownership, while also giving the foreclosee time to possibly gather funds or explore other options while the process is going along.
In this market, even investors are needing to know how to maneuver the foreclosure process and not just for their deals but for their current portfolio also.