Not surprisingly, I just got notified that my mortgage company sold my loan – when they told me they wouldn’t be selling it for quite some time, if at all. I was expecting that it would be sold within the first few years, though given what I was told, I didn’t expect it would happen within the first few months. I’ve only made two payments, after all. Thank goodness I hadn’t yet setup automatic payments. (Sure, those are supposed to transfer, but…)
I got notification that my loan was sold to another mortgage company, but I also got a letter from FannieMae saying that they own my loan (but my loan servicer is still the mortgage company). With all the trouble concerning government-backed mortgages, this meant it was time to do some research. After all, I didn’t have an FHA loan, and I put down 20% at closing. I’m a good bet on a mortgage, right?
So I did my research. And as those of you who already have mortgages know, this is a pretty common thing. Fannie and Freddie and other companies buy up mortgages, allowing the lenders more cash to loan. Okay, sounds solid. My mortgage wasn’t the sort that caused all of the trouble in the first place.
This definitely reaffirms my decision to go with the mortgage company that gave me the best rate. I was comfortable with the rep I worked with, but what sold me were the numbers. When you’re talking that much money, it’s always good to make sure you’re comfortable, but you have to be aware of the fact that your loan could be sold and you will no longer be working with that company.
Megan is a 30-something government employee in the Washington, DC area. She got interested in Personal Finance when she got out of college and realized that her paycheck wasn’t going to go as far as she had hoped. Since starting this blog, she has managed to buy a house and make a solid start on her retirement goals, and hopes to help others do the same. Here is her story:
In 2007, I was a gainfully employed 20-something with no debt but not a lot of knowledge about personal finance. It was a co-worker’s comment about Roth IRAs that sent me to the internet, searching for information. It was then that I realized that I really didn’t know a whole lot about personal finance and that my current financial situation was due a lot to inherent frugal tendencies, generous family members, a fear of debt, and good luck. While that was working for me, clearly I needed a better plan.
While I had no debt, I was also pretty much living paycheck to paycheck and not worrying about going over budget (I say this as if I had a real budget) because I had an emergency fund set aside to cover any overages.
Except that’s not what an emergency fund is for.
So I did a lot of research, read a lot of blogs, and decided that I needed a plan. I needed to budget. I needed to know what I was spending my money on. I needed to prepare for the future.
I decided to create a blog not only to make myself accountable to others but also to share the knowledge that I gained along the way. I’ve learned so much from my fellow bloggers, and I hope that my readers can find something useful in what I have to share as well.
My loan was sold after I had submitted my first payment to the loan originator but well-in-advance of its due date. The originator then refused to release the funds to the new loan purchaser, wells fargo. Wells Fargo showed me 120 days LATE because I didn’t have an extra payment’s worth of funds laying around to make a second-first payment (October 2004, so they applied November’s payment to October,etc for the three months it took to get the originator to give me back my $$.
^^^ Another reason why broke folks shouldn’t buy houses!