Just when I thought a client of mine was going to be granted a principle reduction through the DOJ $27B settlement, the rug got pulled from under them.
They were initially told they were awarded the DOJ principle reduction a few weeks ago. Shortly after, they received a servicing transfer notice and the homeowner was told that anything in process was voided.
They have a former Countrywide loan that was originated in 2006. The 2004-06 CW loans seem to be the borrowers that have received the majority of the reductions.
Does anyone know if they will still be able to receive the principle reduction? After all, a servicing transfer shouldn't get the lender off the hook.
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That's what I figured. Of course, when the loans are sold, they don't go to one of the big 5 servicers!
Seems like a loophole, doesn't it?
From what I've seen, the loans getting the DOJ principal reduction are NOT owned by an investor. Just about all of them that I've witnessed first-hand are portfolio loans from CW or WAMU originated between 2004-06.
I recently listed a home where the homeowner had a BofA serviced-loan (former CW) loan sold to Ocwen then Ocwen granted the DOJ principle reduction.
Again, this is just from my experience. Have you seen otherwise?
Thanks for the clarification. What years were the GMAC loans originated that you've seen?
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