Mortgage loan sold

[confused0852]

What is the name of your state? MN
I refinanced my house after divorce 12/2003. The loan was immediately sold to a bank in Ohio. Late last year, my loan was sold again, this time to a company in Texas. My payments are automatically deducted from my checking account, no action has been required on my part since I took out the mortgage.

The new mortgage holder said there was an escrow deficiency & gave me the choice of allowing the payments to go up ~200/month (default choice), or making a 1200.00 lump sum payment. I opted for the monthly increase.

I have year-end statements from the 2 lenders. The Ohio bank who sold my mortgage shows a fee of $214 for transfering the loan! It was removed from my checking account, but it blended in with the new higher payments & I did not realize what they had done. Is this legal? How can I be charged for their sale of my mortgage loan when I never requested it? What protection is there for borrowers after the mortgage is written, or can mortgage loans be sold repeatedly at the expense of the borrowers?

Secondly, the statement from the new mortgage holder shows my first payment as 3 days late. This has got to be related to their own bookkeeping, as my bank pays automatically. No late fee was charged, but I don't like the way it looks.

The letters informing me of the sale said no action was required, & did not disclose fees, "late" payments, etc. (As if I could have done anything anyway.) Can anyone explain this to me? Thanks!

[HomeGuru]

Originally Posted by confused0852

What is the name of your state? MN
I refinanced my house after divorce 12/2003. The loan was immediately sold to a bank in Ohio. Late last year, my loan was sold again, this time to a company in Texas. My payments are automatically deducted from my checking account, no action has been required on my part since I took out the mortgage.

The new mortgage holder said there was an escrow deficiency & gave me the choice of allowing the payments to go up ~200/month (default choice), or making a 1200.00 lump sum payment. I opted for the monthly increase.

I have year-end statements from the 2 lenders. The Ohio bank who sold my mortgage shows a fee of $214 for transfering the loan! It was removed from my checking account, but it blended in with the new higher payments & I did not realize what they had done. Is this legal? How can I be charged for their sale of my mortgage loan when I never requested it? What protection is there for borrowers after the mortgage is written, or can mortgage loans be sold repeatedly at the expense of the borrowers?

Secondly, the statement from the new mortgage holder shows my first payment as 3 days late. This has got to be related to their own bookkeeping, as my bank pays automatically. No late fee was charged, but I don't like the way it looks.

The letters informing me of the sale said no action was required, & did not disclose fees, "late" payments, etc. (As if I could have done anything anyway.) Can anyone explain this to me? Thanks!

**A: read your mortgage docs. All of the docs that I have reviewed recently include a clause that allows the lender to sell the mortgage without approval by the mortgagor.

[asylum23]

What about this poster being charged a fee? Is that legal?
My loan has been sold 3 times in 4 months! This last time shows 2 late charges for me as well, which I also had auto deductions and made no late payments. Wasn't charged a fee either, but there is a note of a late payment.

[Rhubarb297]

Originally Posted by HomeGuru

**A: read your mortgage docs. All of the docs that I have reviewed recently include a clause that allows the lender to sell the mortgage without approval by the mortgagor.

I don't think he's disputing they have the authority to sell the loan. He has a problem with how the loan has been handled by the company that bought it as well as the transfer fee.

[Rhubarb297]

Originally Posted by confused0852

What is the name of your state? MN
I refinanced my house after divorce 12/2003. The loan was immediately sold to a bank in Ohio. Late last year, my loan was sold again, this time to a company in Texas. My payments are automatically deducted from my checking account, no action has been required on my part since I took out the mortgage.

The new mortgage holder said there was an escrow deficiency & gave me the choice of allowing the payments to go up ~200/month (default choice), or making a 1200.00 lump sum payment. I opted for the monthly increase.

I have year-end statements from the 2 lenders. The Ohio bank who sold my mortgage shows a fee of $214 for transfering the loan! It was removed from my checking account, but it blended in with the new higher payments & I did not realize what they had done. Is this legal? How can I be charged for their sale of my mortgage loan when I never requested it? What protection is there for borrowers after the mortgage is written, or can mortgage loans be sold repeatedly at the expense of the borrowers?

Secondly, the statement from the new mortgage holder shows my first payment as 3 days late. This has got to be related to their own bookkeeping, as my bank pays automatically. No late fee was charged, but I don't like the way it looks.

The letters informing me of the sale said no action was required, & did not disclose fees, "late" payments, etc. (As if I could have done anything anyway.) Can anyone explain this to me? Thanks!

1. That's a pretty large escrow deficiency. But then I don't know how much taxes are on the property, as well as insurance and whether you have mortgage insurance. I would keep a close eye on the escrow. Generally my experience is that mortgage companies are now pretty good about handling escrows.

2. Regarding your payment being three days late, I wouldn't sweat it. If you weren't charged a late fee then you were apparently still in the grace period. And as you're not 30 days late, it won't be reported on your credit report as being late. It sounds like maybe the processing time is longer with the new company, so you may want to change the date on which the bank sends in your mortgage payment. Personally, I think the longer processing fee is the fault of the mortgage company and it should be marked the first day it is received. But mortgage companies have you by the proverbial b----. It's tough to argue with them since you have very little leverage.

3. Regarding the $214 "transfer fee" I've never seen that in Indiana. Maybe your state allows that type of fee. But if they're charging you a fee it should be outlined in your closing papers - probably the transfer disclosure document. If not, I don't see how they can charge you a fee...especially if your state law permit the mortgagee to charge such a fee.

[confused0852]

Yes, my biggest concern is the $214.00 fee for the privilege of being sold to the new mortgage holder. I understand that I have no say as to whether the owners of my mortgage loan keep it or sell it. I also understand that these sales are common, & can easily happen multiple times on a given loan. This is the 3rd company to own my loan. If it's ok to charge the borrower every time the loan changes hands, this can add up to a lot of money over time!

I'd like to know if it's legal. Or, I'd like to learn how/where to find out if it's legal. I already know it's not moral. I thought maybe others have already encountered this issue & can give me a few pointers on how to deal with it. Thanks.