Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I read somewhere, don't know if it was here that a lender sold the loan right after they got it and they had to submit new paperwork? Does this happen often, is there a type of lender to use to avoid this, are loans set after closing or if it's sold do you have to worry about more nonsense and headaches. Are USDA and FHA loans sellable too?
if your loan is sold all terms and paperwork are transferred to the new lender. They get copies of everything and set the loan up in their system using the original terms. All loans are able to be sold but the terms never change.
My loan was sold 30 days after I got it. I didn't have to resubmit anything. My scenario is normal... resubmitting because someone sold your loan? Can't say I've heard of that.
Bottom line is, the terms of your loan stay the same, and if you send the payment to the old loan servicer during a 60-day transition period, it cannot be treated as late by the new servicer. There are also strict rules about how the borrower is notified of the change of servicer.
There have been a couple of annoyances for me - the need to keep updating my insurance policy with the new servicers, and inability to make online payments through the web during the transition, but no real issues.
The more I think about this the more scammy it feels to me. Be careful sending anyone your personal information, specially when they are requesting it out of nowhere.
I've had loans that were sold at closing, I was just told "send your payments to NewBank...."
On my current mortgage, it was sold a couple weeks after closing. Our loan officer, who was a disorganized PITA through the whole process, called me saying he had failed to get some paperwork that the new servicer needed. I was about to tell him to pound sand but I found a clause in our paperwork stating if additional paperwork was requested after closing and I failed to provide it, the loan could be called. I gave it to him, but I gave him a piece of my mind, too.
I've had my mortgages (on my 3rd house now) sold or transferred for servicing multiple times and I've never had to do anything besides making sure I send the payment to the right place. They have to give you a certain amount of notice time and it's never been an issue, although you do want to pay attention to your mail. There has never been any additional paperwork on my part.
I had a loan sold within weeks of closing on a home once. It bothered me because it was a small bank in a smallish city and my hope going in was that we would be doing all our banking there, including mortgage. We sold the house less than 2 years later and bought another in the same community, and this time, when we worked with the bank, we told them we wanted them to keep the loan in-house, and they were happy to do that.
I think when it happens, it not really that big a deal, but it just really illustrates how unimportant you, the Buyer, are in this entire process. You and your assets are just nameless, faceless items to be bought and sold. Just the reality of the situation.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
