Is It Possible to Change Mortgage Loan Servicers?
Can you change your mortgage loan servicer? The easy answer is no. You'll have no real control over where your loan might end up.
Upon closing a loan, the lender can sell that loan to another company. It's common that they do, and they don't need your permission. One good thing is no matter how many times your mortgage changes hands, the original terms stay in place. The only time terms change is when you refinance.
You will receive notice when your loan is turned over to another servicer. It's a good idea to carefully review the transfer, especially payment information. If you have auto payments and dates change, you may need to reschedule payments to avoid late fees.
If you are unhappy with your mortgage servicer, you can consider refinancing.
Refinancing to Change Mortgage Loan Servicers
Your loan automatically goes to a new lender if you refinance. Unfortunately, you can't guarantee the new lender will be a better fit. In fact, there's no way to guarantee your old provider won't end up buying the new one!
Technically, it makes no sense to refinance simply to change mortgage servicers. There should be other benefits. These can include:
Your income and/or credit score have improved. If you qualify for a better interest rate, it makes sense to refinance.
You need to fund a big expense, such as a home renovation, or you want to pay off debt.
You find yourself in a better position for paying off the loan sooner. You'd shorten your repayment terms from a 30-year to a 15-year mortgage.
These are excellent platforms for refinancing and getting new servicers. But the new service shouldn't be the only reason.
If You're Unhappy With Your Mortgage Servicer
If you do have reason to be unhappy with your servicer, here are a few tips for managing the situation.
Document all conversations. All contact with the company should be kept on record. You'll need it when you choose to hold the organization account.
Develop a clear plan of action. Always know the end goal when you contact the company, whether filing complaints or connecting with management.
File official complaints with the CFPB online. The Consumer Financial Protection Bureau will investigate matters with any mortgage servicer.
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