What To Do When Your Mortgage Lender No Longer Exists

What To Do When Your Mortgage Lender No Longer Exists



What to​ Do When Your Mortgage Lender No Longer Exists
So you've paid your mortgage on​ time every month and have always made sure that you​ review your yearly mortgage summary from your lender .​
you​ stay on​ top of​ things and have developed a​ good working relationship with your lender,​ even though they may be thousands of​ miles away .​
Then one day you​ wake up to​ find out that your mortgage lender has been bought or​ sold,​ or​ even worse they have went bankrupt and just closed up shop! Now what do you​ do and how does this affect your mortgage?
There is​ an​ old saying that nothing is​ as​ certain as​ change .​
It's certainly true in​ modern markets where interest rates can change on​ a​ daily basis .​
When a​ mortgage lender goes out of​ business,​ for whatever reason,​ there are typically a​ lot of​ questions from those who are used to​ sending in​ their payments every month .​
the​ very first question is​ How does this affect me? - the​ good news is​ that in​ every case your mortgage rates,​ payments and other terms will not change .​
the​ only thing that is​ likely to​ change is​ the​ address to​ where you​ send the​ payments,​ and even then that might stay the​ same!
Mortgage lenders routinely buy and sell mortgage notes on​ the​ open market .​
in​ fact there are mortgage lenders out there who write mortgages for the​ sole purpose of​ selling them in​ the​ secondary mortgage market .​
in​ years gone by when you​ took out a​ mortgage from your local bank it​ stayed with the​ bank through the​ entire life of​ the​ mortgage .​
Today,​ typically a​ mortgage will be sold an​ average of​ 1.5 times and rarely does it​ stay with the​ original lender unless they were one of​ the​ larger mortgage underwriters.
When a​ mortgage company ceases operation that does not mean that the​ mortgages they wrote no longer exist .​
They are considered assets of​ the​ company and are sold on​ the​ open market typically to​ the​ highest bidder .​
No matter how much they pay for the​ mortgage your rates,​ terms and amount due each month does not change.
The general rule of​ thumb is​ to​ always mail your payments in​ to​ the​ same address you​ have been mailing them until you​ hear from the​ new mortgage servicer directly .​
If you​ have automatic withdrawals from your checking or​ savings account you​ may not have to​ worry about doing anything - the​ withdrawal may change automatically.
Above all,​ do not stop sending your payment in​ or​ wait until you​ hear from the​ new company .​
This will have a​ negative effect on​ your credit and you​ could find yourself heading down the​ road of​ foreclosure .​
Banks,​ lenders and other underwriters have well established procedures in​ place for buying and selling existing mortgage notes .​
in​ the​ end the​ only thing you​ have to​ worry about is​ making sure you​ continue to​ make your payments on​ time every month!




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