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.
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!