Mortgage fright spreads like wildfire

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

The mortgage world has suddenly become very frightening to many people who have no real reason to be frightened. Their mortgages are in good standing, and they are not having any trouble meeting their payments, yet they are in distress -- in large part, because so many around them are in distress. Fear is contagious. The only antidote I know is good information. One important thing that people suffering from mortgage fright often forget is that a mortgage loan is a contract between two parties, and it cannot be violated by either without the permission of the other. If the loan is sold, the purchaser replaces the originating lender as the contracting party and is subject to the contract in the same way. If the servicing of the loan is sold, the servicer as the agent of the owner is required to abide by the terms of the contract, and the same holds if the loan is placed in a pool as collateral for a mortgage-backed security. The first two letters below are from borrowers who ...