what happens when mortgage loan is sold

[LoveTrains]

So I am comparing lenders right now for a mortgage.

Two of them say that the loan will be promptly sold after they close it, generally to wells fargo, chase, boa, citi, etc.

What does that mean for your loan in terms of servicing/processing? If it happens right away after closing, do you generally get the info in time on where to send your first payment, etc?

[twodogsandababy]

We closed on our house in Feb and our first payment was due April 1. When we closed it was financed with American mortgage or something like that, all we got from them was stuff about insuring our mortgage or paying it off early. It was sold to Wells Fargo within a month and we made our first payment to them. It was no big deal.

[jgleespen]

Our loan was sold to Chase immediately. It really didn't change anything for us except Chase took our payment rather than our local bank

[LoveTrains]

so does the new bank/servicer send you a statement when this happens?

[HoneySpider]

Jun 26, 2012 15:14:10 GMT -5 @jgleespen said:

Our loan was sold to Chase immediately. It really didn't change anything for us except Chase took our payment rather than our local bank

Same here, except that ours was sold to Bank of America which made me but actually they've been good.

Paperwork and such all came from BOA....you basically couldn't even tell the original local bank was involved.

[Roc A Bee]

Our mortgage was Wells Fargo, but was sold a couple months later to sallie Mae. I got a letter, but nothing else changed for me. I pay the same way.

[littlemisssunshine]

Ours was immediately bought by Freddie Mac, but our original bank still serviced it. So other than getting a letter saying it the mortgage was sold, nothing happened, we still paid Wells Fargo. The the company that buys your mortgage also services it you'll pay them instead. You'll get all the information in plenty of time to make the payment to the correct bank. It's not something to worry about or to be a deciding factor in which bank to go with.