What Happens To My Mortgage Loan When ItIs Sold To Another Lender?

Many people discover in their mail that a mortgage loan has been sold to another lendingcompany. This is not a reason to panic! The details in the loan agreement will not changewhen sold, and a new lender should treat its customers with the same respect as anothergroup. 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 yourquestions to your real estate professional, title officer or closing officer

Why was my mortgage sold to anotherlender?

The chief concern of all business is making aprofit. However, the standard, fixed-rate loansmay seem great for the lending institution atthe time, but fluctuating interest rates canquickly turn a loan at 7, 8 or 9% into aseemingly bad deal, so the original lender mightsell the mortgage to another lender to coverpotential losses.

What happened to my deal? Will the newlender honor it?

The fear of any borrower when a mortgagechanges hands lies in the rates and terms.However, if Lender A sells a $500,000 mortgageat 8.5% with $100,000 already paid (or anyother set of numbers), Lender B must accept itfor what it is. The original terms all apply: theonly change is where the payments are sent.

I knew I could trust the first group, but canI trust the new one?

Advertisements constantly warn about identitytheft, and a mortgage’s change of hands couldmake this threat seem more real. However, if

my mortgage loan is sold to another lender, theoriginal lender must notify me with the new loan-holder’s physical address and phone number, aswell as the date the change goes into effect.When contacted, the new lender should confirmmy loan information exactly.

So what do I do now that my mortgage hasbeen sold to another lender?

A borrower will never be released from debtwhen a mortgage is sold. When my mortgage loanis sold to another lender, it is my responsibility tocontinue paying as scheduled. It is also myresponsibility to investigate the new company.This can be done with a phone call to confirm theloan details. If anything is suspicious, it is still myresponsibility to make an effort to pay the loanwhile checking into the new lender; I can do thisby opening a new bank account to hold themortgage loan payments until they can be sent tothe lender, showing that I intend to continuepaying my loan.

Sara ForkelDivision Manager

Cell: (909) 573-6384SaraForkel@gmail.com

— Same Team - Same Service - New Name! —