Does Your Mortgage Company Have to Notify You if They Sell Your Loan

If the servicer (that is, the company to whom you make payments) is changing, they are to notify you by mail of the change. Make certain that they have your contact information – sometimes if you have had the property for some time, or if it is now being used as a rental, the lender will not know where to find you.

When the servicer changes, there is a 60 day grace period whereby your payment cannot be marked “late” in credit reporting, so that all checks and payments have a chance to catch up and be registered/posted/processed on your behalf.  In the real and practical world, you will want to watch your payments closely to be certain that they are cashed – while you will not be marked “late” on the payments, they are still due and owing – you do not get to “skip” a month when the servicer changes. Make sure that all payments post.

It is important to note that the company you pay may not be the bank that “owns” your loan– some lenders subcontract out the task of collecting and posting monthly payments. Since your responsibility is to pay the servicer, the loan may be sold behind the scenes without your express notification – but if the servicing company is changing, you should be notified (and notification should include the full contact information for both the old and the new servicer, in case you have questions or concerns).