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Mortgage Loan transfer - problem or routine?

Posted by rococogurl (My Page) on
Tue, Jan 30, 07 at 13:42

Has anyone had their bank transfer the servicing of their mortgage to another bank?

If so, does it matter? Any must-dos? Watch-out-fors?

The "certain consumer rights" cited in the notice of the transfer is total gibberish, which always makes me wonder what's lurking.


Follow-Up Postings:

RE: Mortgage Loan transfer - problem or routine?

It's done all the time. It's just buying debt.

That said, it leaves a bad taste in one's mouth, doesn't it?

RE: Mortgage Loan transfer - problem or routine?

I asked my bank about that when I refinanced and they said they sell them all the time. I've been burned by a bad mortgate company, so I insisted that I make all my payments to my bank and so far, I have. I've had this last mortgage for 4 years with Bank of America. No one else gave me that assurance.

RE: Mortgage Loan transfer - problem or routine?

As was said, this is very common.

The only way to ensure your loan doesn't get transfered or sold is to ask when you are shopping for the mortgage. Some banks/mortgage companies don't offer this, some do. The terms and conditions of the note will spell this out.

There is nothing for the mortgagee to do except to send payment to the new servicer after it takes effect. The borrower (you) doesn't own the note so you really don't have too much control over it. You are only responsibile to pay it :)

RE: Mortgage Loan transfer - problem or routine?

We had a bad experience with our first mortgage -- very big name lender -- where we never could get an accurate accounting, were overcharged, everything based on estimate; they were impossible, insisted on paying taxes and insurance then wouldn't give us any info. The DH is very precise about this stuff.

We refie'd and it's been great.

Now we get this and I thought... here we go again.

Glad to hear it's routine. Whew! Thanks.

Hey pecan, how's the dd and when are you coming to visit?

RE: Mortgage Loan transfer - problem or routine?

The only drawback that I know of is that if your bank holds your mortgage in their portfolio sometimes you are able to modify the loan for a nominal fee (to get a better rate or to go from adjustable to fixed). Once the loan is sold I believe that you lose the ability to do that. At least that's what our bank told us.

RE: Mortgage Loan transfer - problem or routine?

She is doing very well, rococogurl, you are sweet to ask. I'll send you an update in a couple of days.

It will be late spring before I get up for a visit- will you be around?

RE: Mortgage Loan transfer - problem or routine?

thanks jerzee. We had trouble getting modifications in the past -- pretty much refused -- but no problems there. Just didn't want some nasty surprise.

Pecan -- glad to have update. Will be around.

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