Most homeowners have their story – often a harrowing one – on the grueling process of getting a mortgage. For them, the story’s over once they sign the papers and get the money. But that’s just the beginning of a sometimes long and winding journey for the mortgage.
Today, Credit.com (with thanks to Loans by CreditLoan.com) takes a look at the many hands a mortgage passes through once the ink on the borrower’s signature dries.
Also, we take a look at the federal government’s failing Home Affordable Modification Program (HAMP), which was meant to “support a recovery in the housing market,” and “help up to 3 to 4 million at-risk homeowners avoid foreclosure,” according to the U.S. Treasury Department [pdf], by allowing borrowers to re-negotiate the balance on their mortgage, and lower their monthly payments. The Wall Street Journal reports that “Overall, around half of the 1.3 million borrowers put in trial modifications since June 2009 have had their modifications canceled.”
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Thank you for putting together such clear illustrations. It definitely helps out a lot of people who do not know what the process is with a mortgage origination, and to see how many hands it changes. May be now we can appreciate how complex it is, and not jump at any chance we get when we are offered a mortgage for a house.
For them, the story’s over once they sign the papers and get the money. But that’s just the beginning of a sometimes long and winding journey for the mortgage.