Probably one of the most common phone calls I get right after someone has purchased a home is if they are paying their mortgage to the right person. You might think you're getting your home loan through X company but within a couple of weeks or maybe even before you make your first mortgage payment, that loan is sold and now you have to pay someone else. The same goes for refinancing a completely new loan.
Lenders buy and sell loans all of the time, which can make it extremely confusing for homeowners. When you first work with a loan officer early in the home buying or even the refinance process, you develop a trust relationship with that person or company. You shopped around for a new loan, rates, and you might have even interviewed a few loan officers. So why is it that the company you've been going with this entire time all of a sudden sells your loan to someone else? You might receive payment information indicating where you need to make your future payments, and unfortunately, this is where a lot of scam artists can confuse and rip off homeowners.
How and Why They Sell Your Loan
Here's how this works; mortgage companies work with a line of credit and when it's time to fund your loan, the lender will tap into that line of credit for the amount of the new mortgage. To replenish the line of credit, the lender then sells the loan to a third-party mortgage company. When it is sold, the lender now has more funds to make more loans to new purchasers. Many times it's the other mortgage companies who ultimately sell the loan to Fannie Mae or Freddie Mac.
This marketplace for buying and selling mortgages is called the secondary market. It keeps the mortgage market liquids so that funds are available for new homeowners or for those that want to refinance into a new loan. This doesn't necessarily mean your original lender or loan officer isn't loyal to you, but it's a way of staying in business. So how can you verify that the new mortgage company is legitimate?
If you've recently closed on a house, although your personal information is confidential, the fact that you've recently refinanced or purchased a home is now public information. About two or three days after your transaction closes you might get a phone call from someone stating they are your new lender or your new title company and you need to send them to your mortgage payment. Unfortunately, most homebuyers don't think twice about this since they've already given a ton of information over the last month or two.
Related: Pre-Qualify for a Mortgage today
Here's what you need to do.
If anyone calls asking for your personal information or you get something in the mail stating this is where you need to send your payment, contact your lender immediately. This is your loan officer or person that had control over the funding of your loan originally. They will be able to tell you exactly who the loan was sold to and who is legitimate and who's not. Don't blindly trust people calling up on the phone or information in the mail. Make sure you know who you are sending your payment to and that it is actually going towards the reduction of your principal and interest payment on your home. (Read More About This Scam Here)
For all Columbus real estate visit VisionRealty.com