Why cant i buy my mortgage from the bank at the same rate as the buyer that acquires it?

ron janie N asked:


i believe some banks are paying in the neighborhood of 25 cents on the dollar.

Joseph

Tags: Banks, Cents On The Dollar, Mortgage Bank

This entry was posted on Friday, May 29th, 2009 at 8:05 am and is filed under Mortgage Loans. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

3 Responses to “Why cant i buy my mortgage from the bank at the same rate as the buyer that acquires it?”

1. ananamas Says:
   May 29th, 2009 at 8:17 pm

   Corey

   Because you don’t have enough money to buy the whole mortgage, or else you would just pay it off!

2. Qpid59 Says:
   June 1st, 2009 at 11:45 am

   Judy

   Can you elaborate a bit more? The question doesn’t make a lot of sense.

3. AllCourt Says:
   June 3rd, 2009 at 12:49 am

   Darlene

   Good question. Many mortgages are sold in “bundles”, which is how Freddie Mac/Fannie Mae got into trouble - when these bundled, securitized loans started defaulting and blowing up the whole “package”. However, some banks simply have a policy on not selling loans to individuals. I tried contacting Chase Bank on behalf of a borrower who was facing tax sale foreclosure to see if I could buy the bank’s note since they were looking at losing their entire interest if the tax sale foreclosure finished.

   When I finally got through to someone at Chase, they said they no longer sold mortgages to individuals…but that may have just been the position of the person I spoke to - not the “official” position.