August 26, 2011

The new developing market ~ the dangerous “scrap mortgage debt” market.

By Timothy Stull (http://www.fresh-start.co)

One out of every ten home owners is severely late on their mortgages.  Many have tried to complete loan modifications and they have been unsuccessful.  Many banks are denying the loan modification requests and opting to sell the mortgage debt into the scrap mortgage debt market.

 The scrap mortgage debt buyers purchase the debt at 5 cents to 10 cents on the dollar.  Once they obtain the debt they have one simple goal ~ to foreclose on the property.  They are able to reap huge profits from the sale of the property back on the open market; they are also able to collect on the loss through federal insurance funds.  They are able to double dip on profits.  Hence, they have absolutely no motivation to modify the mortgage and allow the home owner to keep the home.

 The first bank is also able to collect on insurance funds through the federal government ~ based on their losses from sale of the debt to the scrap debt buyer.  Hence they escape whole with virtually no loss. 

The tax payer ultimately pays at the end of line. The home owner is also set up for foreclosure at the end of the line.

 The Federal Government does not have any set standard rules surrounding the “scrap mortgage debt” market.  It is a market that is increasing in size rapidly.  It will need to be governed in some measure to avoid the expansion of the federal gov’t debt issue, deflation in home values & a severe homeless problem.

If you are facing foreclosure & your debt has been sold on numerous occasions, you are probably facing a scrap mortgage debt buyer head on.  There are numerous direct legal motions that can be taken to block foreclosure when facing aggressive foreclosure procedures.  You will need an experienced foreclosure defense attorney; one that knows how to effectively challenge the scrap mortgage debt collector.

 

Fresh Start Legal Network has direct connections with attorneys coast to coast that will stop the foreclosure process in its tracks. 

 

We offer a totally free consultation and we are open from 6am to 9pm PST M to F ~ 9am to 2pm Sat.

                 

                             

               1.877.297.7011     www.freshstart-legalnetwork.com

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