While it's not uncommon for mortgages to be sold, many homeowners are surprised when this occurs.  Like other financial commodities, home loans are bought and sold on the free market like stocks and bonds. When a mortgage is sold to another financial institution, it generally triggers the servicing also transferring with payments ultimately being directed to a new vendor.  But what else, if anything, does this mean to you?

Here’s what you might expect when you get the news. These typically seamless transactions rarely cause problems but should you encounter any issues as a current homeowner, it’s important to understand of your rights and what has transpired.

It’s likely that you received a statement when you closed on your home (or refinanced) which noted the possibility for your loan to be sold during its term to another lender. Should that occur, then federal mandates require both the seller and the buyer of your mortgage note to notify you of the pending and closed sales.

With ample notice prior to your next payments due date, your current lender must alert you to the change in writing and provide you complete contact information including the company name, physical address, phone number and account manager of the new servicer.  Additionally, the servicer buying your loan is required to provide this information to you as well. Both should provide a direct link to a person you can contact with questions, not just an automated system.

By giving you the right to ask questions about the status of your loan and receive prompt answer, these requirements protect you from mortgage scams such as those directing you to send payments to an unknown entity.  In addition, you are typically protected from any delinquency status for 60 days during the transition.

Feel free to contact me if you have any questions about buying or selling a home and should you be interested in financing options, I will gladly direct you to trusted, experienced mortgage professionals who can provide additional information about what to expect if your mortgage is ultimately sold.

 

 

Allyson Hoffman, ABR, ACRE, CDPE, CRS, e-PRO, GRI, SFR, SRES
RE
/MAX Villager
Serving Chicago's North Shore, North and Northwest Suburbs
847-310-5300

[email protected]

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Allyson Hoffman is your ultimate real estate resource for Chicago's North Shore, North and Northwest Suburbs and surrounding areas. Visit my website for detailed information regarding today’s real estate markets.

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