St. Croix Real Estate
Ava Gail Bourdon

St. Croix Real Estate
Your Home Team Advantage For Your Residential & Commercial Real Estate

Category: For Sellers

What To Do When Your Mortgage Gets Sold

mortgage soldOne day you may get a letter in the mail that says your mortgage has been sold. Don’t panic. You haven’t done anything wrong. But there are some things to be aware of when dealing with a new lender.

Why Mortgages Are Sold

To a bank, your mortgage is just another financial asset. The decision to sell your mortgage had nothing to do with you.

“Lenders will often sell mortgages in order to free up capital for future lending,” said Sam Sharp, vice president of mortgage lending for the home loan company Guaranteed Rate.

Dealing With Your New Lender

If a lender sells your mortgage, the law requires that you be notified within 15 days of the sale. You should receive two letters, one from your old lender and one from your new lender. These letters should provide you with all the information you will need to communicate with the new lender, including where and how to make your payments. Be sure to send all future payments to the address the new lender gives you. A new lender does not have the right to change the terms of your mortgage, so your payment amount should not change.

The Grace Period

What if you send a payment to your old lender by mistake? Not to worry. One of the stipulations made under the Real Estate Settlement and Procedures Act, or RESPA, protects you against penalties for a limited amount of time after the mortgage transfer.

After your mortgage is sold, there is a 60-day grace period during which the new lender cannot charge a late fee on payment, if you mistakenly sent that payment to the old lender. This two-month grace period “protects the borrower in case there is any miscommunication or a delay in the notification,” Sharp said.

If you are late due to sending the payment to your old lender, the new lender may not report it to any credit agency. Your loan cannot be deemed delinquent during this grace period, either.

Look for Errors

Transferring your mortgage to a new company may sound like it’s an opportunity for errors. While Sharp says this generally doesn’t happen, to be safe, go over your mortgage statement from your new lender and compare it to your old one. In the event that something looks different or you spot a discrepancy, you should write a complaint letter to the new lender, disputing it. The U.S. Department of Housing and Urban Development has a sample of aqualified written request you may want to use as a model for yours. According to the law, the lender must respond to you within 20 business days, and if there is an issue needing resolution, act within 60 business days.

If for some reason the new lender is not responsive, Sharp says to “contact the previous loan servicer to report the issue.” If you’re really not getting anywhere, lodge a complaint with theConsumer Financial Protection Bureau. Companies are required to respond within 15 days to both you and the CFPB.

Keep in mind that your mortgage may be sold several times during your mortgage-paying period. Conversely, it may never be sold again. There’s no sure way of telling, but don’t let that worry you. Just keep making your monthly payments on your mortgage and you will be fine.


Should you sell your home on your own?

Why Do I Need  A RealtorWith the increase in information available online and in books, many homeowners are interested in selling their home on their own. This DIY method of selling is known as “For Sale By Owner.” It’s easy to assume that putting your home on the market is the right choice, but inevitably kinks in the sale happen. Here is a list of some of the unexpected things that could catch you off guard if you choose to sell your home on your own.

• Showing your home during the middle of the week can often push into your usual work schedule. Because you are selling, you are at the disposal of the buyer who wants to see it. If your schedule conflicts with theirs, it will mean making a choice between taking time from work to show the house or letting them move on to choose another.

• Helping buyers understand the mortgage application process can take time. Many times potential buyers need to be educated on why they need to be pre-approved for a mortgage and will most likely need contact information for local lenders. Do you know at least three reputable lenders to refer them to?

• Navigating the negotiating can be tougher than you think. Potential buyers often want sellers to carry their mortgage, give them down payment assistance, or allow them to just rent the house for three years while they “fix” their credit. Being able to work with the buyer to create a positive outcome for both parties is not only an art, it’s a well-versed science.

• Time is money. Finding buyers isn’t always a problem. Finding the right buyer who is serious about putting an offer down on your home may be more challenging than you think. There have been many wasted afternoons when no one shows up for your open house except the neighbors who always wanted a peek at the kitchen remodel.

As a real estate agent who’s seen everything in the business, I can tell you that these are just a few of the issues you will run into when selling your home. The good news is that there are professional REALTORS, like myself, who are available should you have any questions about selling your home for top dollar and in the quickest amount of time. Call me if you have any questions about selling your home on your own.

Listings by Email

Get Listing Updates Sent To Your Inbox