What Happens If My Loan Sold?
A few days ago we covered, What Is The Difference Between A Loan Servicer, Investor and Lender? today we’ll basically be doing a “part 2.” Many time servicers will transfer or sell the rights to a loan. So you might ask What Happens If My Loan Sold? If you’re current on your loan then there’s no need to stress, nothing really happens. However, if you are with Bank of America for instance and you are in a short sale process, then you should be aware.
From Bank Of America:
Bank of America services mortgage loans for hundreds of investors. As a part of normal servicing, investors may decide to release or transfer servicing from Bank of America to another company.
Servicing may be transferred on first, second or stand-alone liens. In most cases, once the servicing transfer occurs, the short sale process ends with Bank of America and the homeowner must contact the new servicer to determine what foreclosure alternatives may be available.
Keys to remember if you are doing a short sale.
Some key activities that may occur during servicing transfer:
All lenders should send a letter 15 days before the transfer date.
- If you are with Bank of America, then they may call the agent to advise of the impacts to the short sale.
- The new servicer will send a letter or statement advising the homeowner where to send payments.
- If an offer has already been accepted on your short sale, a closing has been set and an approval letter issued, the new servicer will determine if the short sale will continue. [In other words, you’ll be starting over, but hopefully “fast tracked.”