When you take out a mortgage on real estate, you sign up with a particular investor or lender, which works through whichever financial institution you have chosen. There are times, however, when your mortgage might change “hands” to another investor or lender, which can be confusing for the uninformed. It is extremely important that you know your rights if your mortgage is sold.
Why was my mortgage sold?
There are many reasons why a mortgage might be sold to another investor or lender. The biggest reason is because of acquisitions and mergers, which can change the name of a financial institution and therefore the body that governs your loans. It can also be sold because a particular lender has too many obligations and wishes to “unload” some of its inventory. Whatever the case, the reason your mortgage is sold is really of no consequence to you, the borrower. If you face any difficulty whatsoever then you can even file an official complaint against the bank. And if you need financial help with The licensing of money you should be contacting one of the credible money lenders of your area for that.
How will I be informed
There are federal regulations that govern the sale of mortgages and other loans, so know that you are well-covered as far as your rights are concerned. Both the selling lender and the buying lender must notify you of the change no less than 15 days before your next scheduled payment is due. Each letter, on the company letterhead, will include the name of the new lender, their telephone number, their physical address, the address to which payments should be sent, and the name of a banking representative to whom you can direct any questions.
Do the terms stay the same?
Again, your rights when your mortgage is sold are covered by the federal government, including the terms to which you agreed when you first took out the mortgage. Your monthly payments, interest rates, and other conditions and rules won’t change when the new lender takes over your loan. Furthermore, all equity you have already built in your house will be transferred to the new lender, as well as records of your past payments.
Is there anything I should be concerned about?
If you don’t receive a letter from your current lender, don’t send payments to the new one until you’ve spoken to a representative. In the past, mortgage scams have arisen in which a fake company sends a homeowner notices that their mortgage has been sold. They don’t discover that this isn’t the case until they’ve defaulted on their current mortgage, which can land you in a heap of trouble. Always verify by phone and in writing notice that your loan has been sold.
Is there more information available?
You can always contact your current mortgage lender with questions about sales of your loans. When you first signed up for your mortgage, the lender was required to provide you with statistics concerning the likelihood that your mortgage might be sold (i.e. less than 50%). You can check up on that language in your contract, or you can call for more details.