Has Your Mortgage Been Sold?
Updated: Dec 31, 2019
I hope your week is off to a good start. For this newsletter, I'd like to go over a question we get all the time: "How did my mortgage get sold to some company I've never even heard of? How did they do this without my approval?"
Most standard Fannie Mae/Freddie Mac mortgages in Florida contain language authorizing your original lender to sell the note and mortgage without your permission. If you go to your county Clerk of Court website and type in your name under "official records," you should be able to find your home mortgage in case you want to review it again.
It is important to remember the difference between your loan being sold and just the servicing rights being transferred. When your note (the debt) and mortgage (which secures your home as collateral for the loan) are sold, that means the rights to the actual note and mortgage have been sold to another company.
When only the servicing rights have been transferred, this means that the owner of the note and mortgage has retained a new servicer to service the loan, to collect and apply payments, and so forth. So when you receive a letter from a mortgage loan servicer, this does not necessarily mean that the servicer owns the rights to the note and mortgage. It just means they have the right, usually through a servicing agreement, to service the mortgage, collect payments, etc. Your loan may actually be owned by an entirely different entity or even a trust.
When your note and mortgage are sold to another company and the property is your principal residence, the Truth in Lending Act requires that the new owner or assignee of your loan notify you in writing of the transfer. This notice must be sent to you no later than 30 calendar days after the transfer and must include the following:
the identity, address, and telephone number of the new creditor;
the date of the transfer;
how to reach an agent or party where transfer of ownership of the debt is recorded; and
any other relevant information regarding the new creditor.
Failure of the new creditor to send this written notice to you could give rise to a claim for damages against the creditor, depending on the circumstances. There is a short statute of limitations of one year on such claims.
I hope this information proves helpful to you.
We are archiving all of our newsletters, so if any of you would like to review any of the previous newsletters, you can read them by clicking HERE.
Thank you for reading and I hope you have a great evening.
Ryan Torrens, Consumer Litigation Attorney
Disclaimer: The information provided in this email does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available in this email is for general informational purposes only.
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