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!