Does Fannie or Freddie Own My Mortgage
by Nat from Maryland
Ask Kate does Fannie Mae or Freddie Mac own my mortgage loan: Dear Kate, My huge nationwide lender says they don't know who owns my mortgage. I bought my home in 2007 and my mortgage has a 6.125 interest rate. I have never missed a payment but my home is now severely under water.
Nat continues... When I found out about the HARP program (through your website), I contacted another mortgage lender to find out if I qualified for HARP because as the years have gone by I've lost trust in my bank.
According to that mortgage lender, my loan is owned by Fannie Mae. So because I meet the other HARP qualification criteria, this lender said I should be able to qualify for HARP. But I would have to apply for HARP through my original mortgage lender.
So I contacted them and was quickly told that I don't qualify because my loan is not owned by Fannie or Freddie. When I asked who owns my mortgage, they told me, "We don't know who owns your mortgage."
I didn't understand their explanation. If the bank doesn't know who owns my mortgage, then who receives my monthly payments?
Then they told me because my home is so underwater, I don't qualify for a refinance or any type of loan modification.
Can you tell me how I find out who owns my mortgage, and how I might be able to obtain a refi or loan modification. Would another lender be able to help me out?
If I can't refinance, what else can I do to help myself get to a better financial position? Should I start paying extra "principal only payments" to help lower the interest, or are there other options to consider?
If you think making extra monthly payments is the answer, what percentage of my mortgage should I pay? I've read suggestions that you should make extra payments that will equal a 13th mortgage payment per year? Thank you in advance for your advice on this matter.
Kate Answers: Does Fannie or Freddie Own My Mortgage Loan
***zz-portrait-left.shtml*** Dear Nat,
Ridiculously bad behavior for an enormous bank. Really shameful.
So do this. Call Fannie Mae yourself at 1-800-7FANNIE and do what the bank should have.
You can also call Freddie Mac at 1-800-FREDDIE.New! Find participating Freddie Mac and Fannie Mae Lenders here!
Can Your Mortgage Loan Be Too Far Underwater for HARP 2
As far as being underwater, your mortgage can't be too far underwater now due to HARP 2. Loan to value restrictions were lifted, after all. ***zzz-link-harp-announcement.shtml*** But it is important to note that HARP 2 features are being rolled out incrementally. A few improvements here and a few there.
Look for announcements in the blue box on this page or at my Best Mortgage Rate Blog
How to Shop for HARP Lenders
Back to who owns your loan. If you find out that either Fannie Mae or Freddie Mac owns your mortgage, call your bank back with the news and see how they react.
But you can also shop and compare other lenders. Go to How to Compare Mortgage Lenders with Ease
and How to Reduce Mortgage Refinancing Costs
for tips based on my years of experience originating mortgages and working one on one with borrowers. ***zzz-link-harp-freddie.shtml***
What If I Can't Refinance My Mortgage?
Nat, don't give up too easily on HARP. It could make your mortgage payment much more affordable. But if it turns out your loan is not eligible, I have two suggestions to help you keep on track to being debt free.
Years before we suspected the value of homes across the United States were about to plummet creating underwater mortgages, I wrote How to Get the Best Fixed Rate Mortgage
. The same principals are true today.
Another note I would add is this. Whether you have consumer debt, an underwater mortgage, or are fortunate to still have equity, most everyone wants to be debt free. I think you'll like the step by step plan in my new book, The Mortgage Freedom Project. ***zz-newsletter.shtml*** Good luck, Nat. I wish you the very best.
Ask Kate and Comment Ask Kate a question
or skip to the bottom of this page to add a comment.
Have You Seen the Most Recent Ask Kate Answers
Tell a Friend
My goal is to empower homeowners! Please share Does Fannie or Freddie Own My Mortgage Loan
with your friends.