Question about Mortgage Sale

[CanadianVol]

Don't know if anyone knows this, but worth a shot.

Paid our first mortgage payment through my Bank's Bill Pay this morning. Tonight, I come home to a letter saying the mortgage has been sold. Do I need to stop the payment, or will my old lender forward it to the new servicer?

 

[JackBombero]

Don't know if anyone knows this, but worth a shot.

Paid our first mortgage payment through my Bank's Bill Pay this morning. Tonight, I come home to a letter saying the mortgage has been sold. Do I need to stop the payment, or will my old lender forward it to the new servicer?

There is normally a window of time to cover this very situation. They also generally wont report any late payments to credit for about 60 days to help cover any delays. The old lender should send it to the new one. I'd recommend calling both lenders. Call the old one to ensure timely payment transferring. Call the new lender to verify their payment options.

Best wishes and congrats on the new place!

 

[CanadianVol]

Thanks for the advice. I called both companies last night and waiting to hear back.

 

[the.one.the.only]

Your mortgage will be sold probably a dozen more times before all is said and done. By law, you have the right to pay either lender for 60 days without getting fees (as long as you're on time), but after that 60 days you must pay the new lender.

What they purchased was the servicing rights. I'm assuming the actual mortgage was bought by Fannie Mae/ Freddie Mac

 

[CanadianVol]

Your mortgage will be sold probably a dozen more times before all is said and done. By law, you have the right to pay either lender for 60 days without getting fees (as long as you're on time), but after that 60 days you must pay the new lender.

What they purchased was the servicing rights. I'm assuming the actual mortgage was bought by Fannie Mae/ Freddie Mac

Fannie did buy it. I heard back from both today. The current holder/servicer will fwd the payment to the new servicer, and won't affect me. I'll just have to stay on top of it to make sure that's right.

 

[YankeeVol]

My mortgage was sold soon after getting it thru USAA.

 

[the.one.the.only]

Fannie did buy it. I heard back from both today. The current holder/servicer will fwd the payment to the new servicer, and won't affect me. I'll just have to stay on top of it to make sure that's right.

They're required by federal law to comply with this. You won't have any issues with them fwd payments. And if you do, you can bring the hammer down on them.

 

[the.one.the.only]

Fannie did buy it. I heard back from both today. The current holder/servicer will fwd the payment to the new servicer, and won't affect me. I'll just have to stay on top of it to make sure that's right.

Fannie buys them so your mortgage lender can afford to lend more money out. Then Fannie packages your mortgage with thousands of other similar mortgages and sells mortgage based securities, the same ones that almost tanked the world economy.