Our Home Equity loan was sold

@reinydawn (11649)
United States
November 4, 2008 9:32pm CST
A few years ago we took out a home equity loan to build a decent deck on the back of our house. It's huge, it's georgous, we love it. It was an awesome investment. At first we went through the mortgage company that holds our first mortgage, and within a couple months they "sold" the loan to another bank. Well, it's now been "sold" to a different bank. This really doesn't mean anything, other than we have to add another bill pay to our on-line banking and get the on-line access for the loan set up. But in todays market, I'm wondering if the bank we've made our payments to for the past couple years is having equity problems... I mean, it's much more well known than the bank that's taken over the loan. I don't have any other account at the "old" bank, but it just makes me wonder why they got rid of the loan????
1 person likes this
3 responses
@newtondak (3950)
• United States
12 Nov 08
We experienced the same thing and the company that bought the loan was horrible. Regardless of whether you were up to date on your loan or not, they were calling every other day wanting to know when you were going to make your next payment - even though it wasn't due. The original company we had the loan with was very good and the people very nice to work with, but once the loan was sold to this other company, it was a nightmare.
@reinydawn (11649)
• United States
14 Nov 08
Whoa, that's a drag! When we first took out the Home Equitly loan, it was sold before our first payment was due, but we've had the same bank since. When I've had this happen in the past, it's always been a smooth transition - nothing like what yours sounds like.
@newtondak (3950)
• United States
14 Nov 08
Yes, it was. We eventually sold the property just to get away from this company. I found out that they did the same thing with all their loans and they eventually went out of business and all the loans were sold to someone else. There were several lawsuits brought against them.
1 person likes this
@nadooa247 (1096)
• United States
12 Nov 08
i think i watched something on Opera about that... (don't roll your eyes hear me out...) From what i understood banks get a percentage from what you WOULD pay when they sell your loan... but they don't sell one or two loans at a time, they might sell 50 or more depending how big the bank is. They make money in this way. If you default on your loan the bank that BOUGHT your loan goes back to your "old" bank and says "uh uh" give it back... the same goes for home loans and what not. When you can't pay and lose your home or whatever you put as collateral the bank takes a loss on it and loses money. Again, from what i understood this is what pushed the economy into what it is today... not one or two people but 100's - 1000's of people don't pay and the bank loses. It is just a business deal in the long run. It has nothing to do with you per say rather just a way for the bank to make money faster.
1 person likes this
@reinydawn (11649)
• United States
14 Nov 08
I mostly figured they were doing it for cash-flow reasons. I've been paying a bit more attention to what's going on here the last couple months, and it was just making me wonder when it happened.
@beaniecat (329)
• United States
9 Nov 08
I wouldn't worry about it too much. It's pretty common. Our mortgae and 2nd mortgage have changed hands at least once a year over the past 5 years. It is a pain to have to collect multiple forms from multiple banks to do taxes each year.
1 person likes this
@reinydawn (11649)
• United States
9 Nov 08
We've had them sold before too, but it's normally only been right after it started. With the way banks are now, I don't know if it's good news or bad news when they start selling off mortgages. Maybe the bank's in trouble and needs cash right away. It doesn't affect me - other than changing where I send the money - but it sure does make me wonder about the stability of the old bank.