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Banks selling mortgages - Escow mess ups & raised Mort Incre

Posted on: 16th May, 2012 06:54 pm
My Husband and I just went through a mortgage modification loan with a bank. We were "forced" to not pay our mortgage for 2 months in order to qualify for the modification loan. We have always made our mortgage payments on time. We got the Mod. loan.
Since the sale of our mortgage, 2nd time banks have sold our mortgage to another bank, our escrow gets screwed up, monthly payment goes up.
Currently the "NEW" bank now holding our loan, is harassing us by saying that the escrow and the difference in the NEW mortgage payment is $1880, they are demanding an extra payment of the said amount.
There letter received today says that if the above amount is not received by the stated date, that they may exercise their rights to seek possession of the collateral.
Is there any where, any thing, laws etc, were we as consumers have rights against the banks for selling off our mortgage to banks that we would not consider, or do not want to change banks? :x
Hi Guest,

I haven't heard of any such law which states that you, the borrower, will be able to stop the existing lender to sell off the mortgage to some other bank. If you still want to take any legal actions against your lender, you can consider consulting a real estate attorney.
Posted on: 16th May, 2012 07:43 pm
Hi brave!

Welcome to forums!

I agree with Adonis. I don't think there is law which will help the borrower in stopping the transfer of loan from his original lender to some other lender.

Feel free to ask if you've further queries.

Sussane
Posted on: 17th May, 2012 08:05 pm
Loan terms don't change when banks sell mortgages to each other. Annually, your Lender will adjust your escrow fees because your property taxes and homeowners insurance change every year. But that's the only adjustment you should encounter.
Posted on: 18th May, 2012 09:17 am
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