Some home buyers face a big surprise after closing – they learn that their mortgage was sold. This may sound alarming. But it’s actually quite common. And it won’t affect the loan rate, terms or amount owed. Still, it’s natural to ask: What happens when my mortgage is sold?
By the end of this blog, you will better understand what to expect and how you can seek advice E.A.R.L.Y. for any questions you may have!
E – ngagement
First, your outgoing loan owner – the original lender – will send you a Goodbye letter immediately before your loan will transfer to the new loan owner.
Your new loan owner must then send you out a “Hello Letter”. This will give details of who has bought your loan. It will confirm:
- The loan facility which they have taken ownership of; and
- The mortgaged property.
The Hello letter will provide you with the new loan owner’s contact details and they will invite you to get in touch.
A – rrange
In the scenario where the loan facility is in arrears, the new loan owner will ask for a completed Standard Financial Statement (SFS). Standard Financial Statement (SFS)
Other supporting documentation will be asked from you and your financial circumstances will be examined and assessed.
The loan owner will review their list of solutions and let you know the solution that is most appropriate. The solution offered is based on the borrower’s circumstances and reviewed on a case-by-case basis.
R – eview
The new loan owner will consider a settlement offer from you (If you have the financial ability to provide a genuine offer). Acceptance will be entirely at the discretion of the new loan owner.
The loan owner will have to engage with a nominated third– party – such as a personal insolvency practitioner (PIP), accountant, or MABS money adviser – acting on your behalf where written authorisation has been provided.
L – ook for Help
Understanding this process and what is involved can be difficult. That is where our team of advisers can help you. Your local MABS dedicated mortgage arrears adviser (DMA) or Abhaile PIP will engage with your new loan owner on your behalf throughout the entire process, if you wish! Simply reach out and let’s get the conversation started.
If you are facing mortgage arrears, you can also visit Abhaile to discover our free mortgage arrears support and to learn about our services available that can help tackle your mortgage debt.
Y – es, We’re Here to Help
For more information on mortgage arrears, the Abhaile services, tips on taking control of mortgage debt and some frequently asked mortgage arrears questions, check out our Abhaile homepage. That’s all for now but check back soon for more top tips!
Would you like some one-to-one free and non-judgmental support with mortgage arrears? Call the MABS National Helpline on 0818 07 2000 Monday to Friday, from 9am to 8pm. Text an adviser on WhatsApp 086 035 3141 or request a callback if you want to talk confidentially about mortgage debt or general financial matters.