What To Do When Your Mortgage Servicer Sells Or Transfers Your Loan — Your Rights In Ohio
For many Ohio homeowners, few things are more unsettling than receiving notice that their mortgage has been sold or transferred to a new servicer. Even if you’ve never missed a payment, the sudden change can feel confusing, and sometimes mistakes happen during the transition. Understanding your rights can help you stay protected and avoid problems that could lead to wrongful fees, credit issues, or even foreclosure.
Below is a clear guide on what loan transfers mean, what to watch for, and when to get legal help.
Why do mortgage transfers happen?
Mortgage transfers are extremely common. Lenders regularly sell loans to investors, and servicers frequently transfer the management of those loans to other companies. None of this changes the terms of your mortgage. The interest rate, payment schedule, and total balance all stay the same.
But the transfer does change who you make payments to, and that’s where issues can arise.
You must receive written notice
By law, both your old loan servicer and the new one are required to send you written notice when your loan is being transferred. These letters should clearly spell out a few key details:
- When the new servicer will begin taking your payments
- When the old servicer will stop accepting them
- Your new account number, if it’s changing
- How to reach the new servicer (phone, email, etc.)
- What to do about payments during the handoff
If you don’t get both notices, or if something seems off, don’t ignore it. That could be a sign of a mistake or even a scan, so it’s important to follow up right away.
Your rights during the 60-day grace period
There is an important federal protection many homeowners don’t know about: a 60-day grace period after the transfer. During this time:
- If you mistakenly send a payment to your old servicer, it must be forwarded to the new one
- You cannot be charged late fees because of confusion during the transfer
- Your credit cannot be negatively reported for payment-related mix-ups
If a servicer violates these protections, they may be liable for damages.
Common transfer problems to watch for
While most transfers go smoothly, errors are more common than people realize, and some can lead to serious consequences if not corrected quickly.
Be on the alert for:
- Payment misapplied or “missing” after the transfer
- Escrow shortages created by the new servicer
- Unexpected increases in monthly payments
- Fees or charges you’ve never seen before
- Incorrect delinquency notices
- Credit reporting errors
- The new servicer claims you’re behind when you aren’t
Since mortgage companies handle huge volumes of loans, data entry mistakes and miscommunication aren’t unusual.
Talk to a Columbus, OH, Foreclosure Defense Lawyer Today
Kohl & Cook Law Firm, LLC, represents the interests of Ohio residents who are facing foreclosure of their home. Call our Columbus foreclosure defense lawyers today to schedule an appointment, and we can begin discussing your best moves right away.
