Client Question Answered: My lender just sold my loan. Is that a good thing?

Bountiful UTAH - We recently received a question from a client of ours named Renee. “My loan was just sold. I was making payments to First Franklin and they sold it to a company called Litton. Is that good or bad?” Renee asked.


Here is the answer. It’s neither good nor bad. In fact, I don’t think your loan was actually sold. You see, most loans were packaged up and sold to Fannie Mae, Freddie Mac, or one of the Wall Street companies.

Renee’s loan was more than likely packaged up and sold off long ago. I asked her who his original lender was. She said it was a company called First Utah. (First Utah is a small local bank.)

The Utah Home Saver Team has negotiated short sales on loans that were originally with First Utah. The last one was sold to a large Wall Street Firm and bundled in to a mortgage backed security.  That means Renee’s loan could be owned by any one of many possible companies or investors. More than likely it is owned by Fannie Mae or Freddie Mac. If not, then it was probably sold to a Wall Street Firm.

The owner of the loan hired First Franklin to act as their "front man."  That means First Franklin collected the payments, handled escrows and accounting, and manages debt collections and foreclosures.  This is also known as being the SERVICER of the loan.

More than likely Litton did not actually buy the loan. Instead whoever owns the loan hired them to act as the front man instead of First Franklin.

Thinking about a short sale? I can help you short sale your property and never pay the bank another dime. Send me an e-mail at utahhomesaver@gmail.com. I will contact you for a free consultation.  When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call Dave at 801-651-0707.

Thinking about a loan modification? Our Utah Home Saver Loan Modification Kit has the instructions you will need to get a loan modification approved with your bank.  This is a FREE for you, all you have to do is call or email us today.

Thank you for taking a few minutes of your busy day to read this, Dave Forsberg.

Dave is a Realtor with Prudential Utah Real Estate - Bountiful.

Phone: 801.651.0707   Email: utahhomesaver@gmail.com

Dave Forsberg and The Utah Home Saver Team specialize in helping Davis County, Utah Homeowners short sale and never pay the bank another dime. Bountiful Loan Modification Help, Bountiful Short Sales. Bountiful Short Sale Realtor. Bountiful Realtors. Bountiful Realty. Bountiful Realtor. North Salt Lake Short Sales. Woods Cross Short Sale Realtor. Centerville Short Sales. Farmington Short Sale Realtor. Fruit Heights Short Sales. Kaysville Short Sales Realtor. Layton Short Sales. Layton Short Sales Realtors. Syracuse Short Sales. Clearfield Short Sales Realtor. Davis County Utah Realtor. Stop Foreclosure. Stop Utah Foreclosure. Avoid Foreclosure. Avoid Utah Foreclosure. Foreclosure Alternatives. Utah Foreclosure Alternatives. Bountiful Homes for Sale. Bountiful Houses for Sale.