Welcome. My goal is to share some insight on the residential real estate market mostly in the California area. My take is from my daily activity, from office meetings, agents in my office, material from the Calfornia Association of Realtors and from other parties/entities related to this industry.
Feel free to comment. All relevent comments are to the benefit of those reading this blog. This is not intended to make any recommendation of any kind on buying or selling nor am I providing any tax advice. Please check in with appropriate professionals before making a major decision. Don't we just hate those disclamers...
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What to do if your mortgage is sold to another lender. (Be alert)
It's estimated that approximately 50% of mortages are sold from one lender to another, often because the original lender is not equipped to service the loan to collect payments, manage escrow, pay taxes and insurance and prepare payoff statements. Some borrowers may receive letters in the mail alerting them of the sale of their loan a few days after closing, while others may not receive a notice for years.
This is called a "transfer of servicing" and is common practice. Borrowers should be be too concerned about these changes, as the majority of lenders transfer their servicing rights to loans.
Keep reading...
Generally, the selling of a mortgage loan is a smooth transaction and does not impact the borrower. However, every so often there is a misstep by either party.
Under the National Affordable Housing Act, when a mortgage loan is sold, the borrower is to receive a "goodby" letter from their current servicers at least 15 days before the next payment is due listing the contact information of the new servicer. Under the Helping Families Save Their Homes Act, signed by President Obama on May 20, 2009, the new owner of the loan - which may or may not be the servicer - also must notify the borrower of the transfer within 30 days, know as the "hello" letter.
The "hello" letter should outline the same information as the "goodby" letter. Borrows should be cautious if they receive a "hello" letter without receiving a "goodby" letter as they may be the target of a scam by someone hoping to unlawfully receive the monthly payment. Concerned borrowers should contact their current loan servicer to verify if their loan has been transferred. If not, then authorities should be contacted immediately.
In most cases, a mortgage payment sent to the old servicer will be forwarded to the new servicer for a brief period of time. However, if payments are not sent to the correct servicer, they could become lost, and the homeowner may incur late fees.
Be certain to correct any electronic funds payment information by canceling your old arrangement. Do follow up with any correcpondence you may receive concerning your insurance or taxes to make sure the new servicer also has a copy.
Content from C.A.R. Mortgage Update
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