4 ms·

How exactly does this work? You have a contract with company X. Company X sells your payments to company Y. Your payments per the contract should still be going

by uiri 10y ago

How exactly does this work? You have a contract with company X. Company X sells your payments to company Y. Your payments per the contract should still be going to company X unless the contract stipulates otherwise - that they can have you do the payment forwarding for them. Neither company can alter the contract you signed; that's not how contacts work. Any policy that is material to your mortgage should be in the contract. So what kind of shitty things can company Y do?

ceejayoz 10y ago
Your mortgage contract will undoubtedly include language indicating it can be sold to another company.
- mgkimsal 10y ago
  Yep, and pretty much every mortgage I've had (or seen - I worked at a mortgage company for a while) included this language, and was pretty up front about it. I've never seen terms change (like prepayment penalties, etc), but who you send payments to can change. ONE time, I had a mortgage sold to another servicer, and that servicer had "each electronic payment requires a $3 fee". THAT one ticked me off. Yes, I can still send paper checks, which are subject to getting 'lost' or 'delayed', but electronic xfer? $3. I did not sign up for that, but have no choice about who services this loan. :/ (refinanced and left - that's about the only recourse you have, and it often involves hefty fees as well)
  - kale 10y ago
    This is the frustrating part to me. I bought a house with a broker I used a lot (flipped abused houses for a few years). He sold the loan to company A, which was great. They sold the loan to company B after a year, and the nightmare started. One month, they withdrew my mortgage twice on the same day (found out when my debit card declined at the grocery store). They sent a mortgage interest statement in January. I filled out my taxes, then after I had gotten my refund, they sent a corrected mortgage interest statement. I had to make a judgement call on whether this required re-filing taxes and the expense that entailed. The worst was when we got a $2500 check from the mortgage company, saying they had recalculated our escrow, and they had overestimated it initially. We spent most of that money on setting up a nursery for a new baby. Two months later, we received another letter saying, "whoops, our bad, we actually did have escrow calculated correctly the first time. Pay us $2500 in 30 days or your house note is going up by $200 a month until escrow is funded again". EDIT: Recalled another issue with this company. I'd get e-mails monthly: "You're late on your payment. We're about to foreclose on your house". This would be followed by an e-mail: "Our computer system is being upgraded. Please disregard late payment e-mails if you've paid your mortgage. We should have this fixed within three months".
    - mgkimsal 10y ago
      yay.... ugh, horrible. would love for someone to 'disrupt' the mortgage industry, specifically servicing. I don't particularly care about the upfront stuff - you only go through that once, but you live with a servicer for years, you have little or no control, and it's generally crappy. I refuse to let others handle my escrow, and pay taxes myself. I've had companies 'miss' tax payments, or pay the wrong amount, and I'm still stuck holding the bag, and potentially losing my house, but I didn't have the money to cover it - the mortgage servicer did.

by uiri 10y ago

ceejayoz 10y ago

Your mortgage contract will undoubtedly include language indicating it can be sold to another company.

mgkimsal 10y ago
Yep, and pretty much every mortgage I've had (or seen - I worked at a mortgage company for a while) included this language, and was pretty up front about it. I've never seen terms change (like prepayment penalties, etc), but who you send payments to can change. ONE time, I had a mortgage sold to another servicer, and that servicer had "each electronic payment requires a $3 fee". THAT one ticked me off. Yes, I can still send paper checks, which are subject to getting 'lost' or 'delayed', but electronic xfer? $3. I did not sign up for that, but have no choice about who services this loan. :/ (refinanced and left - that's about the only recourse you have, and it often involves hefty fees as well)
- kale 10y ago
  This is the frustrating part to me. I bought a house with a broker I used a lot (flipped abused houses for a few years). He sold the loan to company A, which was great. They sold the loan to company B after a year, and the nightmare started. One month, they withdrew my mortgage twice on the same day (found out when my debit card declined at the grocery store). They sent a mortgage interest statement in January. I filled out my taxes, then after I had gotten my refund, they sent a corrected mortgage interest statement. I had to make a judgement call on whether this required re-filing taxes and the expense that entailed. The worst was when we got a $2500 check from the mortgage company, saying they had recalculated our escrow, and they had overestimated it initially. We spent most of that money on setting up a nursery for a new baby. Two months later, we received another letter saying, "whoops, our bad, we actually did have escrow calculated correctly the first time. Pay us $2500 in 30 days or your house note is going up by $200 a month until escrow is funded again". EDIT: Recalled another issue with this company. I'd get e-mails monthly: "You're late on your payment. We're about to foreclose on your house". This would be followed by an e-mail: "Our computer system is being upgraded. Please disregard late payment e-mails if you've paid your mortgage. We should have this fixed within three months".
  - mgkimsal 10y ago
    yay.... ugh, horrible. would love for someone to 'disrupt' the mortgage industry, specifically servicing. I don't particularly care about the upfront stuff - you only go through that once, but you live with a servicer for years, you have little or no control, and it's generally crappy. I refuse to let others handle my escrow, and pay taxes myself. I've had companies 'miss' tax payments, or pay the wrong amount, and I'm still stuck holding the bag, and potentially losing my house, but I didn't have the money to cover it - the mortgage servicer did.