Saturday, October 23, 2010

Has your mortgage changed hands?

When I bought my condo, I got my mortgage though a company I read about on Bankrate (Bankrate is an aggregater of financial information). I can't remember the name of the company at this point, but it was based in Atlanta.

Immediately after closing, that company transferred the mortgage to Flagstar Bank, a pretty big bank based in the Midwest. I had been expecting that and happily made payments for a few months.


Eventually, Flagstar sold my mortgage to CitiMortgage. I was fine with this, as Citi had a better website and setting up my automatic payments and escrow account was quick and easy. I didn't really think about the monthly mortgage after that. Citi was humming away in the background.




When I got home from my most recent business trip, I had a letter from Citi saying they were selling my mortgage to "IBM Lender Business Process Services, Inc." This is effective on November 1st. That's in a few days. I'm supposed to send my November 1st mortgage payment directly to IBM. I called Citi about the lack of information about where to send my payment and the staffer to whom I spoke was a little wishy washy. He told me not to worry, that I'd probably make my payment late, but it wasn't a big deal. Really? Late mortgage payments aren't a big deal? That's interesting.

I went to the website for IBM Lender Business Process Services, Inc. (who in the world came up with that catchy name?) and found out that they just go by LBPS. They charge a $5 fee for paying online or by phone. If I want to set up a direct transfer from my bank, I have to mail in a form.

Here's where this gets interesting. I just called IBM because I don't have any account number or form to send to them with this November 1st payment. They were very nice (far nicer than the Citi guy I spoke to earlier). They told me that I won't get my paper work until after November 1st. In fact, my "welcome packet" probably wouldn't arrive until the middle of the month. They assured me that I wouldn't be assessed a late fee or be reported as paying my mortgage late. Regardless, I'm a little uncomfortable with the fact that I don't know where to send a very important payment that is due in just a few days.

This whole thing is just annoying. It has me wondering if the transferring of mortgages is common. Is everyone getting passed around the way I have been? Has your mortgage been transferred? How many times?
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10 comments:

  1. Mine was only been transferred once. I forget who the first mortgage was with but after a couple of months it was sold to Ctitmorgage. I've had mo trouble with them. I even refinanced with them.

    Clarosie

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  2. Transferring mortgages is very common, sometimes even at the closing table

    . If it were me, I would probably pay this month's payment to your old holder and plan to send the new one to your new mortgage holder.

    But, in this brave new world of mortgages and mortgage processing, God only knows what next month will bring. :)

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  3. This happened a lot with our first house, not as much with our second house, and not at all with our third (current house).

    Jim's advice sounds good.

    ReplyDelete
  4. Quicken -> Countrywide -> Bank of America. Each time we had plenty of notice about the new mortgage holder, payment info., etc. Do you have a "grace period" with your current holder? Our payment is due the 1st but not late till the 16th.

    ReplyDelete
  5. You and I got the same letter at the same time it seems! And when I called Citi about it I spoke to 3 people and they were all so rude to me. I have so many questions since this is my first home loan, I am have never asked for a modification, I am not late, and does this affect my credit score. I have no clue who to ask. Soo frustrating! Kristen - Nevada

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  6. I have a friend who walked away from a very well paying job at Citi because she found them so morally bankrupt. While Katrina was devastating the Gulf the big boys were celebrating with champagne, the late payments that would be going into the coffers. Citi loves them some late payment fees.

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  7. We bought a house June 15 and the mortgage has changed hands three times already!

    Crazy, isn't it?

    ReplyDelete
  8. Countrywide > BOA > Citi > LBPS. I didn't have an issue with Citi. They seemed like the best of the pack, but I've heard some real nightmares from other posting boards/blogs about fees and hidden charges when those folks tried to short sell, or refi their loans. May are rumbling for a class action lawsuit because of the plethora of unfair practices.

    I just had my first interaction with LBPS acquiring my loan account # and info to make payment. It was okay, but they're not as sophisticated as Citi (as you would imagine!). I'm setting my expectations low and I'm going to try to refi my note (not with LBPS).

    ReplyDelete
  9. I got this letter too, and my payment's also due (or past due) Nov. 1st. I'm very nervous, because I googled this company and I see lots of complaints about payments not being credited, payments mailed well ahead of time being credited a couple of weeks later so a late fee is charged, threats of foreclosure for a payment less than 30 days late, and much worse.

    ReplyDelete
  10. I wonder how many of you have gone into forclosure since then?

    ReplyDelete

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