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Your loan can be sold at any
time. There is a secondary mortgage market in which lenders frequently buy
and sell pools of mortgages. This secondary mortgage market results in lower
rates for consumers. A lender buying your loan assumes all terms and
conditions of the original loan. As a result, the only thing that changes
when a loan is sold is to whom you mail your payment. If your loan has been
sold, your existing lender will notify you that your loan has been sold, who
your new lender is, and where you should send your payments from now on.
If your lender goes out of business, you are
still obligated to make payments! Typically, loans owned by a lender going
out of business are sold to another lender. The lender purchasing your loan
is obligated to honor the terms and conditions of the original loan.
Therefore, if your lender goes out of business, it makes little difference
with regards to your loan payments. In some cases, there may be a gap
between the date of your lender's going out of business and the date that a
new lender purchases your loan. In such a situation, continue making
payments to your old lender until you are asked to make payments to your new
lender. |
