First of all Wilshire is not a "Bank" They only wish! Second they are responsible for MANY FORCLOSURES!! Yes you have to get behind in your mortgage to get foreclosed on but this "Servicing" company that represents Bank Lasalle (Bought out by BofA) and while I don't believe they are owned by Merrill Lynch They do act as a "Loan Servicer" as required in order to make a mortgage backed security and Merrill Lynch Mortgage Investments, Inc. is one of the many companies that created these mortgage backed securities using Wilshire Credit as their mortgage servicer. The problem stems from the fact that Wilshire has no authority to modify your loan and makes it VERY difficult to to make any arrangements to catch up on your payments or process a "Short Refi" which is what it is going to take to pull Us out of the crisis we are in.
My Personal experience with Wilshire is employees read directly from some sort of rebuttal script and abide strictly by their hardship application to do anything but accept payments in full. One hand has no idea what the other is doing. I was dealing with Wilshire to catch up on my mortgage at full price with one department while the other department sold my home for 50% of what I owed!! This cant have been a good decision for anyone involved but the truth is that thousands of people own a piece of your mortgage if Wilshire is your servicer. Wilshire has no power to negotiate as they are just a servicer for the loan. Simply finding out who the owner of your trust deed is is absolutely impossible until your home is foreclosed on! Someone needs to do something about this! You are waiting your time and breath trying to negotiate with Wilshire if you want to do anything of other mortgages. When that number was big enough (around 2 Billion) it was divided into about 8 pieces and sold to companies like Lasalle Bank, deutsche bank, And others they then highered wall street companies like merrill lynch to qualify them as mortgage backed securities. In order to qualify they need Three main components. !. A Loan Servicer (Wilshire ) to keep track of the payments 2. An Insurance Servicer that monitors your homeowners insurance to insure its kept current. 3. A Tax Servicer that ensures that your property taxes are paid. After these requirements are met they are able to apply to sell shares in their piece of that 2 billion dollars in cash flow. Everyone making their commission and fee's every step of the way. Everything is fun , merry and everyone makes money and is happy. EXEPT When things go into a tailspin. Currently Wilshire is selling their accounts for about .50 on the dollar upon forclosure but they cant offer that to their current customers Unfortunately. It seems like they should figure out how to get the authority to negotiate short refis (A Short Sale Back To the Original Customer at the current appraised value rather than selling the home in a foreclosure at .50 on the dollar owed. It Just doesnt make sense.
In Wilshire's defense they are not the bank, the lender, or the deed holder they are just a middle man designed to collect the check and forward it to the real note holder! The one you have no right to speak to or even know who they are.
After their 1999 BK I agree that they are strong as ever they have no exposure to the losses. They just need to admit they cant help and negotiate with their corporate note holding customers and ask them to refi the current customer at today's appraised rate since Wilshire and their like are killing not only their customers house price they are killing all the homes in those neighborhood.
One Last Comment I think that most employees employed in a collections department in a bank, or loan servicing company that says things like "this is your fault for not paying your bills" are usually low paid representatives who have bad credit and rent their homes. Nothing against renting but they are in glass houses throwing stones. If they really knew how hard it is to get a mortgage, save for a down payment, and Struggle to make real mortgage, insurance and tax bills on their own home they wouldn't be on this site blaming you for your foreclosure. There are VERY few Americans in the world today that bought their home or refinanced it in the last four years that are not struggling to make their payments or struggling with the fact that their homes value has plummeted in the last 18 months to a price that even the people with the best credit and ate struggling with the decision whether to keep their home or go buy another home at half the price and let the one they have go back to that bank. Number one reason? The banks wont consider modifying your loan unless you get behind. Causing anyone with the ability to take a credit score hit to stop making his payments until he is behind enough to get taken seriously. Hopefully the servicers and banks come around and offer much needed loan modifications.
Las vegas, Nevada