If you have received a letter stating that your mortgage has been sold or transferred, you may feel some anxiety. Dont worry, this is a very normal occurence and you havent done anything wrong.

Most mortgage lenders sell their mortgages to other, larger lenders or institutional lenders. They sell their mortgages for a liitle more than they loaned out and use the proceeds to cover expenses and fund more mortgages.

When your mortgage is sold to another company you are required by law (RESPA) to receive notification by both the seller of the mortgage and the buyer. RESPA also allows for up to 60 days for payments made to the old provider and transfered to the new provider not to be penalized in any way. If you have any questions concerning how this works, call the numbers that are usually attached to such notices or contact your mortgage professional.

Even though your mortgage has been sold, none of the terms of your mortgage can change. Your interest rate, payments, prepayment penalty period, adjustment period and start date, and length of your mortgage can not be changed.

 

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