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What happens to my mortgage loan when it is sold to another lender?
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What happens to my mortgage loan when it is sold to another lender?


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What happens to my mortgage loan when it is sold to another lender?

What happens to my mortgage loan when it is sold to another lender?

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  • 1. What Happens To My Mortgage Loan When It Is Sold To Another Lender? Many people discover in their mail that a mortgage loan has been sold to another lending company. This is not a reason to panic! The details in the loan agreement will not change when sold, and a new lender should treat its customers with the same respect as another group. With that said, there are a few key details to explain about this process. Please note that the information contained herein is for general informational purposes only. If you are currently involved in a real estate transaction, please direct your questions to your real estate professional, title officer or closing officer Why was my mortgage sold to another lender? The chief concern of all business is making a profit. However, the standard, fixed-rate loans may seem great for the lending institution at the time, but fluctuating interest rates can quickly turn a loan at 7, 8 or 9% into a seemingly bad deal, so the original lender might sell the mortgage to another lender to cover potential losses. What happened to my deal? Will the new lender honor it? The fear of any borrower when a mortgage changes hands lies in the rates and terms. However, if Lender A sells a $500,000 mortgage at 8.5% with $100,000 already paid (or any other set of numbers), Lender B must accept it for what it is. The original terms all apply: the only change is where the payments are sent. I knew I could trust the first group, but can I trust the new one? Advertisements constantly warn about identity theft, and a mortgage’s change of hands could make this threat seem more real. However, if my mortgage loan is sold to another lender, the original lender must notify me with the new loan- holder’s physical address and phone number, as well as the date the change goes into effect. When contacted, the new lender should confirm my loan information exactly. So what do I do now that my mortgage has been sold to another lender? A borrower will never be released from debt when a mortgage is sold. When my mortgage loan is sold to another lender, it is my responsibility to continue paying as scheduled. It is also my responsibility to investigate the new company. This can be done with a phone call to confirm the loan details. If anything is suspicious, it is still my responsibility to make an effort to pay the loan while checking into the new lender; I can do this by opening a new bank account to hold the mortgage loan payments until they can be sent to the lender, showing that I intend to continue paying my loan. Sara ForkelDivision Manager Cell: (909) 573-6384 — Same Team - Same Service - New Name! —