Ocwen Financial Corp and Walter Investment Management Corp have just won Residential Capital LLC in a bankruptcy auction for $3 billion, but what’s in store for moderators who have been dealing with the loan servicer?
ResCap is a mortgage servicing company, also known as a servicer. It acts as a kind of middle man between lenders and mortgagors to collect payments from homeowners and help out when borrowers become distressed. Several banks, including Morgan Stanley and Bank of America Corp have loan servicers handle this area of their operations so the banks can have more time to deal with other lending matters. Servicers perform daily maintenance on the loans, including keeping up with borrowers, taking payments, etc.
The auction is still subject to bankruptcy court approval, but a hearing is scheduled for November 19. This means that in less than a month, borrowers whose accounts are handled by ResCap will have someone new to report to. Is any change in store for borrowers whose home loans are managed by ResCap? Or will the processing stay the same?
Ocwen seems to be fixated on acquiring as many mortgage servicing companies as possible to increase capital, but will it be at the expense of mortgagors? Will foreclosure be in store? We can only wait and see.
Borrowers who have been struggling with their mortgages or who have already received a notice of foreclosure are encouraged to seek legal help to prevent the seizure of their properties. Foreclosure attorneys are here to offer assistance to all borrowers in order to find an alternative solution to repossession.
Call a foreclosure attorney near you to discuss your options and file a case.