First Time Home Purchased - Mortgage Question
Hi All,
Some of you might remember me, I don't come on here very often since moving out of town. Used to use another handle "ComputerSharp" and think fondly of the many discussions I've had on this forum. And a lot of great advice and tips too! So I thought it would be a good place to ask this question...
My fiance and I bought our first home over the summer and shopped around to various lenders to try and get the best deal for a mortgage that we could. We finally settled on a bank to process our mortgage for us and I remember reading material that says they basically have the right to transfer or sell the mortgage to another bank but didn't think much of it. Thought if something like that happened, it would be years down the road.
Interestingly enough, however, we received notices that our mortgage was essentially being transferred to another lender and that we need to submit payment to that lender now. I found this to be somewhat odd, to be happening on the very first mortgage payement! But who knows, maybe this is actually very common. I've reached out to my original contact at the bank that processed our mortgage, but thought I'd check on here to see if any experienced homeowners understand what this might be about and could enlighten me.
Thanks in advance!
RyanOMac Very Common!!!!!
no worries, your deal will not change and will likely be serviced in a similar manner (if not better).
Congratulations on your new home!
davedigsducats Ryan,
This is very common.
especially if you go thru smaller banks, they become brokers.
They get a cut and the bigger one assumes the responsibility and risk...
BrownEyesGuy Thanks guys - the mortgage rep got back to me and told me that the other company was a "servicing" company. I checked out what this means online and have a better understanding now.
Very common. This has happened on pretty much every mortgage I've ever had. In many cases my first payment went the the original lender then the mortgage was sold and payment 2 went to the new lender.
sackThe same thing happened to me. Wells Fargo bought out my mortgage before the first payment was due. Very common. Nothing changed regarding the loan, payments, etc.
LAS 
Nosila It is not uncommon because many times the urban banks can make $ on "originating" the loan, but then other states with different costs are used to "service" the loan. They will buy it because they make more money, and the big bank knows it.
However, you are doing the right thing. When this happens you get two letters - one welcome letter from the new bank, but you also get an exit letter from your existing bank. Definitely don't want to be sending payments to anyone unless the current bank confirms it.
Yes, there are scams that do exactly what you are afraid of. They take advantage of all the sales of mortgages and send fake welcome letters. Some people don't figure this out until they've made a bunch of payments to the crooks and the real bank starts sending default letters. So definitely always confirm the sale of the loan with your initial bank.
GC Ryan,
My finance and I purchased our first home in January of this year and the same exact thing happened to us. I was told by our lender that this is very common. Congratulations and enjoy!
Kelsey
Kelsey 
Calico696 My mortgage company changed twice in the past year that I have owned my house. It never happened when I bought my first house back in 1997 though.
Ryan's getting married on Saturday!!! Whoo hoooo!!
H-town Mama 
Buffy Happened to me on the drive home from signing the papers......
The other weird one was refinancing every 2+ or more years to take advantage of lower rates. Must have done this four times over the years. Because on each one I rolled the surround costs in, I ended up paying a lower monthly mortgage amount but owing more principal while maintaining the payment period at 35 years.
I called it realizing the true American dream; owing more and paying less.
strangerdanger I know of some one who signed the loan with Bank A, and when the loan went to Bank B, he said that they never signed up for a loan with Bank B. So their smart decision was to stop paying the house....and into foreclosure they went/
BEG, I wish I could remember the exact details but there was a similar case where the homeowner changed the terms of his contract, which the bank neglected to check, and was able to either get the home for free or for significantly reduced cost. Upheld in court too, IIRC.
Always read your contracts!
Justintime JIT - The thing I've heard of seems to happen when the loan gets sold so many times, they lose the documentation. If the bank can't produce the original Note, they're sunk because they can't prove you even have a mortgage. But so true about reading everything.
Reselling the loan is a standard part of the contracts, and continuing so far down the line to end up in foreclosure over that is silly. If you don't like the bank that bought it, you just refinance. If for some reason he continued to pay the old bank and they ketp the money then it would be a different story. But not paying at all has nothing to do with who has the loan.
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