Quote:
Originally Posted by mbanks21
Thanks guys. We have many emails from multiple PNC employees saying this can be done, not one of them said "may be done". I feel like they only said this to get our business from the start. As mentioned above, PNC does not keep these loans, they sell them to the highest bidder which was some place called Blue Foundry Banking or some shit like that. I'm waiting for a call back still but we're super pissed. Yes we could easily take our loan elsewhere but it's still a major hassle and more paperwork to fill out.
And yes I'm sure we could easily take the $200k and invest it and pay the mortgage that way but I'd have to convince the Mrs.
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When I read your post I thought they probably sold your loan and the new bank is who will not recast the loan. I am not sure if the new bank has to honor the recast request, the question is who is servicing the loan.
This is something everyone should know about loans and something I learned many years go and ever since I always ask if the load will be sold. I personally will not do a mortgage with a broker/bank if they immediately sells the loan. For the last 20+ yrs my mortgages and refi have been with Wells Fargo, (yes they do sell their loans, however, in my case, I am a long term customer and low loan risk they made it clear they would hang on to my loan. Even if they did they would always service the loan.
I only had one loan sold that I was made aware of, and did not have any issues, however, I read a number of horror stories. If you get a loan through a bank and they sell it, they can agree to keep servicing the loan, ie you keep sending the check to them and they pay the bank that owns the loan. To the borrower, they may never know the loan was sold.
The other situation is when they sell the loan and transfer the servicing of the loan to the new bank and thus you are notified and have to then make your payments to a new bank. This is the situation which causes people lots of problem and people got foreclosed on. This happen in 2008. There were stories of people making payment to the original bank for months and had no idea the loan was sold and they were suppose to make the payment to a new bank, or they were told and tried to pay the new bank and the new bank did not know they owned the loan.
This is not the only game they play today. I use to be able to make extra payment and have it automatically apply to the principle, can not do that today, it must be agreed upon up front for extra payments, you have to call and tell them to apply it to the principle, otherwise, they will just hang onto the extra and apply it when the next payment is due. I have be told banks do not allow all these things to make the loans more portable, ie more easily sold, it had to sell loans with all kinds of special arrangement on payment and repayment.