The big five mortgage servicers are selling off their inventory of mortgage servicing clients to non-bank entities.
Why are they doing this to the middle-class? It is clear, the non-bank servicers have much less regulation. They believe that these non-bank entities will not be a dogged by regulators in moving foreclosures through the illegal mills as these mortgage servicers are not participants in the National mortgage settlement nor HAMP, HAFA or the other federally mandated programs.
Our client’s home was in foreclosure for about 3 years prior to coming to us for help. After completing the debt analyst there was no way the client could be approved for a modification. They just had too much debt. We recommended that the client consult a bankruptcy attorney. The client filed a bankruptcy; Once the BK was filed, we immediately submitted all necessary documents for the modification review. During that time, the lender filed for and received a relief of stay from the court.