Your loan can be sold at any time. There is a secondary
mortgage market in which lenders frequently buy and sell pools
of mortgages. This secondary mortgage market results in lower
rates for consumers. A lender buying your loan assumes all terms
and conditions of the original loan. As a result, the only thing
that changes when a loan is sold is to whom you mail your
payment. If your loan has been sold, your existing lender will
notify you that your loan has been sold, who your new lender is,
and where you should send your payments from now on.
If your lender goes out of business, you are still obligated
to make payments! Typically, loans owned by a lender going out
of business are sold to another lender. The lender purchasing
your loan is obligated to honor the terms and conditions of the
original loan. Therefore, if your lender goes out of business,
it makes little difference with regards to your loan payments.
In some cases, there may be a gap between the date of your
lender's going out of business and the date that a new lender
purchases your loan. In such a situation, continue making
payments to your old lender until you are asked to make payments
to your new lender.
