What Happens When Your Loan Is Sold?

Once you close on the home, it’s common for your loan to be sold. Don’t worry, this doesn’t mean anything will change. Banks will often sell mortgages to other lenders to free up money. This can happen multiple times during the duration of your loan or not happen at all.

• What happens when a loan is sold?
• Your lender is legally required to notify you within 15 days. You’ll receive a letter from your old lender and a letter from your new lender.
• Your new lender will provide information on who to make payments payable to from here on out, where to send them, and the payment methods they have available.
• Your new lender will provide contact information and customer service information.
• You get a 60-day grace period in case a payment gets sent to your old lender. During this time, you can’t get charged late fees, get reported to a credit agency, or get any delinquency marks on your loan.

The terms of your loan will stay the same, however be sure to compare your old contract with your new contract to make sure there aren’t any discrepancies.

If you see a mistake or issue:

• File a written complaint to your new lender’s customer service department (not the same place you send your payments).
• Any communication you send to your new lender must receive a response within 20 business days.
• Any questions, complaints, or disputes you send to your new lender must be investigated and fixed within 60 business days.
• It’s important to continue making mortgage payments while the issue is resolved.
• If you don’t receive a response from your new lender, report them to the Consumer Financial Protection Bureau (CFPB).

Nothing should change if your mortgage is sold and it’s not a cause for alarm.