Our mortgage is sold, transfer seems disorganized--is this typical?

[StressLess]

Capitol One has shut down their mortgage business, and our mortgage has been sold to another company. Yet a different company will be the servicer.


Capitol One sent a letter that says "If you have recurring automatic drafts currently scheduled for your loan, they'll continue as planned. XXX will draft your payments as scheduled going forward." It should have come out of our checking today, but it didn't.



Apparently, our mortgage isn't actually in the new servicer's system yet. I tried to register for an online log-in so I could look and make sure the automatic payments were set up. But I couldn't create the online account because the account number we got in the mail from the new servicer wasn't recognized yet, and neither were my husband's and my social security numbers.


I called the customer service number, and they said it's going to take a lot of time to get all the Capitol One accounts fully transferred. The rep said I could pay over the phone, but I told him I wanted a paper trail. He recommended I send in the payment via money order or certified check so there would be no doubt that the funds were available on the due date and I'm credited right away when they get it. I went to look at the payment coupon they'd sent, to get it ready to mail in, and the amount is blank. They apparently don't even know the amount my payment is supposed to be!


The rep also told me that despite what the letter from Capitol One said, the automatic payment set-up will not be carrying over at all.



Is this typical, or does this sound like an unusually disorganized **** show?

[prosper]

Sounds very similar to my experience. My mortgage has been sold at least 5 times. It usually works out over time.

[disneysteve]

Sounds very similar to my experience. My mortgage has been sold at least 5 times. It usually works out over time.

Agreed. We've had our loan sold many times over the past 24 years. Sometimes it's been more seamless than other times but it always got settled quickly.

[StressLess]

Thanks, Prosper and DisneySteve. I'll try to be patient and not worry.



We've never been through this before except when we refinanced by our own choice. This mortgage goes all the way back to when they were ING; I guess we've been lucky.

[msomnipotent]

This happened to me before. Give them 30 days from the date the mortgage was transferred. You have to set up automatic payments with them yourself. Also, be sure to tell your insurance company to change the name on your policy to the new servicer. I just cleared up a problem with my refinance where the broker's name was on our policy and not the actual servicer. The mortgage company was about to buy a homeowner's policy for us without even telling us that they didn't have the policy info. I only found this out because one of those "fix your roof for free after insurance" scammers came to my door and said Allstate was listed as my insurance, which it is not, and I decided to check with our carrier.

[greenskeeper]

The homeowner should get a kick-back every time their mortgage is sold

[snafu]

Do you track the elements that comprise your mortgage payment as principal, interest, taxes [anything else applicable]? I don't know how many months you've been making mortgage payments but wonder if a delay in paying principal ultimately costs you a few dollars extra.

Back in the day when we were accelerating mortgage principal payments, the date that sum was applied affected the interest sum deducted.

[QuarterMillionMan]

I was lucky with Bank of Hawaii which kept my mortgage for 17 years which I paid off early in 2017.

[StressLess]

Another wrinkle. Now, a few days after I made the effort to send a money order by certified mail, I got an email from the new servicer saying the automatic payments will continue. This is contrary to what I was told on the phone.


Since our payment was due in the beginning of the month, we fall in the category of having our automatic payment taken out on Aug 14. Except I've already paid it. Thank goodness our mortgage payment is ridiculously small, so if I can't get the extra payment cancelled our checking account won't take a big hit. (We don't do escrow, but pay our own insurance and taxes.)

[disneysteve]

I'd be annoyed if I got forced into a double payment due to misinformation but it's not an awful problem. It only benefits you in the long run. Hopefully, going forward, everything will run smoothly.

[snafu]

If I were making a double payment, I would direct it be applied directly to principal. Do you think your new mortgage lender is competent enough to do that? Have you ever looked into using a Credit Union? The better ones pay out a percentage of profit to their clients.