It’s no secret that mortgage lenders can sell your loan to another company. But one woman says her original lender may have sold hers in “record” time.
In a video with over 625,000 views, TikToker Melissa Wake (@wakebudgets) says her mortgage company sold her loan before she made her first payment.
“I was going on today to make my first payment, but it wouldn’t let me. So I ended up calling them,” she explains.
Wake says a “super rude” customer service worker informs her that the company had sold her loan. She asks which company purchased the loan.
“He’s like, ‘Well, we don’t have it anymore,’” she says. “He ended up helping me after several rude comments.”
She continues, “I’m so shocked that they could already sell it before I even made my first payment. They didn’t even send me a notice.” Wake does not disclose the original lender.
How fast do lenders sell mortgages to other companies?
According to Bankrate, many lenders end up selling mortgages to secondary market companies as they can’t afford to wait 15 to 30 years to receive the money from the loan.
But how fast do these sales happen after a buyer signs a mortgage? Viewers say it happens faster than you might think.
“Hi! As a lender, it is super common to sell a loan prior to your 1st payment. 95% of the time the notice is sent via mail but never seems to make it to the buyers in time,” one commenter explains.
“Any conforming loan can be sold immediately. Your mortgage was likely sold before it was closed. Banks do this for liquidity,” another says.
“Mine was sold twice before my first payment lol,” a viewer shares.
“Mine sold my loan before I even bought the house,” a fourth adds.
Do these sales affect mortgage terms?
While Wake’s video highlights the inconvenience of a mortgage sale, changing lenders does not impact the interest rate or loan terms.
“Totally normal. We were told this during the process by several people. It will be sold a ton of times,” a viewer says.
“It’s very common same thing happened to me no biggie,” another assures Wake.
However, some homeowners say these sales have cost them.
“The 3rd time my mortgage was sold I received 3 letters in the mail on the same day 1st was from the previous holder, 2nd to the new holder and 3rd late payment notice. I can empathize,” one shares.
“Yeah mine didn’t tell me either and caused me to be late because no one could tell me who to pay!!!” another writes.
@wakebudgets I definitely didn’t think it would happen this fast #mortgage #spending #budget #budgeting #credit #creditcard #savings #paycheck #debtfreejourney #budgettips #save #spreadsheet #money #cash #debt #mortgageadvice #house #housepayoff ♬ original sound – wakebudgets
The Daily Dot reached out to Wake for further comment.
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