Home Buying in 77071>Question Details

Don, Home Owner in Houston, TX

Why would Bk of Am sell our home loan to a company with such bad reviews? We have excellent credit?(Select Portfolio)

Asked by Don, Houston, TX Sun Aug 26, 2012

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5
The sale of your loan from one lender to another has nothing to do with you. It is a business decision made by the lenders. They are simply transferring the ownership of an earning asset. The seller gets cash to use for whatever purpose they want to use it for – probably to make more loans. The recipient gets an asset which they believe will make them money – as you make payment to them.

Your loan terms will remain the same. They cannot be changed by the new owner. The only difference is that you will make your payments to a new payee and send them to a new address.
0 votes Thank Flag Link Fri Aug 31, 2012
Loans are commodities and they are sold like commodities. In fact that is part of what caused this economic mess we are still digging our way out of. Even though your bank sold the loan your loan terms cannot change. If you look (not even too hard) you will see plenty of bad reviews on BofA as well. Just keep making your payments and nothing will change.

_______________________________________
Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o 512.669.5599 m 512.633.4157
listings@dongroff.com | http://www.AustinListed.com
0 votes Thank Flag Link Tue Aug 28, 2012
Don,

The go a little bit more into detail, the loan companies bundle a bunch of loans and sell them to another bank. They mix in loans whose applicants have really good credit with those whose scores are low. If they didn't, then nobody would buy the loans with low scores and the original lenders would be stuck with them. The best advice I can give, having my loan sold to a bad company, is keep record of every payment, print the confimation page, put it in a file and keep a copy on your computer. People get wrongfully foreclosed on because of human error and without the confirmaion number, your payment is lost if it goes to the wrong account. I hope this helps!
0 votes Thank Flag Link Mon Aug 27, 2012
Thanks.
Flag Mon Aug 27, 2012
Don,

If you are not happy with your loan servicer and your interest rate is too high, you should look into a refinance. You want to have your mortgage with a company, which has good online capabilities as well.


Neal Davis
Senior Mortgage Banker
NMLS No. 213826

Republic State Mortgage Company
2121 Sage Road, Suite 140
Houston, Texas 77056

713-579-7810 (Direct)
713-579-7801 (Fax)

ndavis@rsmc.net
http://www.republicstatemortgage.com
0 votes Thank Flag Link Mon Aug 27, 2012
It has nothing to do with your credit or the company with bad reviews. They sold it for one reason and one reason alone:

Money.

Rather than holding your loan (and lots of lenders don't--they do just what BoA did), they sell it. They make some profit up-front. Then they sell it. That gives BoA money to make more loans.

It's purely a business decision. Dollars and cents. It has nothing to do with you.
0 votes Thank Flag Link Mon Aug 27, 2012
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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