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Can someone buy a mortage from a lender without the knowledge or permission of the current borrower?
Posted on February 13th, 2011 5 comments
Murphyboy asked:
A question came up about this and I need an answer. Say a private party wanted to buy up a mortage that the original borrower took out on a piece of property, must the original borrower need to be notified or give permission for the sale?
Jamie5 responses to “Can someone buy a mortage from a lender without the knowledge or permission of the current borrower?”
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I could be wrong on this but I believe that when you took out the mortgage you probably signed a statement that gave permission for the mortgage to be sold. The terms are not allowed to change, it’s just that your mortgage payment will go to a different address.
I know that with my house in Arizona, my mortgage was sold twice in a 10 year period. Nothing changed, we just received a letter in the mail stating that our mortgage had been sold and we would receive a new coupon book shortly and then given the address of where to send payment encase the booklet didn’t make it in time.
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Feeling Mutual February 17th, 2011 at 23:38
Yes. The borrower will have to notifed after the note has been sold however, and the original terms apply.
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Doctor Deth February 18th, 2011 at 06:07
you don’t need permission from the mortgagee (the home owner), but you’ll have to let them know the new person/company and address to send the mortgage payments to
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Faith In God February 20th, 2011 at 23:05
Yes a mortgage can be sold by the lender without knowledge or permission of the borrower. When that happens the new lender does not have to abide by the agreement the borrower and first lender made. The new lender can make their own contract making it harder for the borrower to pay the money back. It happens when two banks merge with one another. Or the first lender sees the mortgage is not making them enough profit. So they sell it off to another bank. Then something comes in the mail from the new lender. Telling them they now are the mortgage owner so they need to be paid. But nothing is said why the first lender sold to the second lender. When you make calls trying to get answers it only leads to more confusion.
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Richie Rich February 22nd, 2011 at 19:10
Yes. Happens all the time with most mortgages. When this happens though, your date to pay could change.
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Marie February 16th, 2011 at 01:34