Who Holds My Mortgage And Why Does It Change?
Have you ever received your monthly mortgage statement in the mail and wondered who the lender was and why they were sending you mail? Many times the mortgage lender you originally make payments to when you first purchase your home does not stay the same the entire length of your loan term. Mortgages and the underlying notes are often bought and sold, or are serviced by a third party and all of this activity can make it hard to know where to send your payment. Countless homeowners have received statements from a never before heard of lender, and in some cases believed the notice was “junk mail”. When that happens it is easy to fail to remit payment, because as the homeowner you have become confused about where to send your money. The problem with this is that if you fail to pay, the lender will take action to collect what is due and may even begin the foreclosure process.
In order to avoid missing a payment, it is helpful to know why mortgage holders change and what you can do when you receive notice of a new loan or mortgage holder:
- The buying and selling of mortgage notes helps to keep the lending markets liquid, which could mean less strict lending practices and a boost to the economy.
- If your loan is sold you will not be asked to sign any new documents, and the terms you originally agreed to cannot change.
- The only impact you should feel when your mortgage loan is sold is that you write your monthly mortgage payment check to a new entity.
- If you have received notice of your loan being sold, be sure to update your records and if the account number is new now, given the loan is now with a new lender who may have had to change the way your loan is identified in their system, be sure to include your new account number with your payment so it is properly applied.
If you ever have a question about whether your payment was processed the way it was supposed to be, you should ask for a payment history. As the borrower you are entitled to be provided a copy of all transactions that have taken place on your account and an explanation of any discrepancy you find. Keeping good records yourself is the first step to making sure a new lender has credited all the payments you have made, and comes in handy as a defense to foreclosure if the lender’s records are incomplete. For more information about how mortgage loans work and what to do if you are behind on your payments, call us today.
For more information about how to find out who holds your mortgage loan and what you can do when a new lender fails to properly apply payments, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.