I've been receiveing letter from my mortgage company offering to lower my rate (considerably) for free. What's the rub? Is there a chance they've realized I have one of the false mortgages and they need me to refi to get their records straight?
Overnight letter to refinance for free
see what Ann B. is saying about her experience in foreclosure now...
(scroll down to January 10th entry before it falls off...)
for the record, here's the item of note:
"In September of 2010, Wells Fargo started calling me AGGRESSIVELY, pleading with me to refinance my mortgage. After getting numerous assurances that it would cost me nothing, I agreed. In fact, I used the reduction in the interest rate from 2007 to 2010 to shorten the term of the mortgage, while keeping the same monthly payment, which for me also included an additional principal payment. And, it didn't cost me anything. Fine. No problem.
Well, about two weeks later, what do you think arrives in the mail? A letter from Freddie Mac stating that Wells Fargo had sold my mortgage to Freddie. Wells Fargo was using the refi market as an impetus to dump as many mortgages as possible onto the United States government - and taxpayer."
I have refinanced my homes many times. My previous home (1995-2003) was refinanced 5 times, each time reducing the interest rate. My current home has been refinanced 3 times, again, each time reducing the interest rate. In every case I worked with a company locally that focuses on refinancing, and I had a net out of pocket expense of $0 or less (yes, sometimes I actually got money back). This is totally legit, though obviously you should do your due diligence on the company you choose.
For each of the refinance efforts, I price-checked with my existing loan holder and each of the financial institutions I do business with (1 bank, 4 credit unions). In all cases, this one company was equal to or better than the other options, though I was able to get $0 refinance offers from most of them. When I got an equal offer from a bank/credit union, I chose this company because I have had very consistent and excellent customer service from them.
My home loan has been sourced to several different lenders in this process. We have had Countrywide and Wells Fargo most often, and twice the lender has sold our mortgage. This selling of mortgages is a common practice, and could happen at any time unless your mortgage docs preclude it. There is nothing necessarily nefarious about selling the mortgage. Note that the last 3 refinancings, all on my current home, have all been with Wells Fargo, and they have not sold it.
In general, for sure there are a lot of mortgages that are being sold to the Federal Reserve. The Fed is buying $45 billion of mortgages every month (QE3, or QE4Ever). If I were a bank selling to the Fed, I would sell them the stinkiest, nastiest, least likely to be repaid mortgages to get them off my books. The Fed is where bad loans go to die, but only if you are a TBTF bank.