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bdunn1299 · Joined: 21 Sep 2009 Posts: 1 1.33 Dollars($)

THEY SAY THEY MAY LET ANOTHER COMPANY SERVICE YOUR LOAN BUT NOTHING WILL CHANGE--WHAT EXACTLY DOES SERVICING MEAN--WILL INTEREST AND/OR PAYMENTS CHANGE ?

Posted: Mon Sep 21, 2009 6:30 pm Post subject: LOANS

DOES ADVANCED FINANCIAL SELL YOUR LOANS TO OTHER COMPANIES

jenkin7 · Posted: Tue Sep 22, 2009 2:12 am Post subject:

Hi bdunn,

gmakerley · Posted: Tue Sep 22, 2009 9:26 am Post subject:

i believe that the original post concerns the likelihood of the sale of the servicing of a mortgage. lenders are required to provide a disclosure that lets a borrower know the possibility that a loan may or may not be transferred to another.

sale of loans in the secondary market is common, and virtually every loan in america these days gets sold. it is not anything to be particularly concerned about. it will not mean a change in interest rate, nor in the nominal payments called for with a specific interest rate.

it is not something to fear.

Guest

George Akerley is exactly right. The disclosure you would receive indicates 100% of our loans are sold. What that means is the serving of your loan to collect payments for principle, interest, tax and insurance and provide year end tax statements. Two important things to understand, First; Most 1st mortgage loans are sold for servicing rights. And, 2nd, the mortgage note with the lender NEVER CHANGES! So, you have a MORTGAGE NOTE which describes the amount of the loan, the term of the loan (how many years) the interest rate, the type of loan, etc. That legal document never changes (unless you sell your home or refinance the loan you have). AFS would always be your MORTGAGE COMPANY and the MORTGAGE NOTE is filed in your county recorders office that way. The servicing of the loan can change (and in some cases, more than once or twice). The example where your payments can change is if the TAXES or INSURANCE on your home increases or decreases and you have those included in your payment and held in escrow. If this total annual amount of insurance premium or taxes change, then the MONTHLY PAYMENT MUST change to keep sufficient funds in the separate ESCROW ACCOUNT to be able to make the payment(s) IN FULL when they become due for TAXES and INSURANCE. The servicer of your loan will notify if there is a shortage or surplus in this account and adjust the T & I portion of the P.I.T.I. payment; Principle, Interest, Taxes and Insurance. The P & I portion can NEVER CHANGE per the MORTGAGE NOTE or agreement to repay the loan. The payment for P & I can change if you have an adjustable rate mortgage, or other type of mortgage.

Hope that helps. Please CALL 800-333-3004 to speak with a LOAN SPECIALIST TODAY about your situation to see which loan program is going to be right for you! Interest Rates are near 4 month lows now!
We have been in business since 1983 and have over 400 employees to serve you.

Chip Leakas
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Newport, RI 02840
401-846-3100 ext 3305
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gmakerley · Posted: Mon Sep 28, 2009 11:13 am Post subject:

chip please refrain from posting a solicitation such as you did with the "please call...notation." it's contrary to the guidelines and rules of this community.

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DOES ANYONE KNOW IF ADVANCED FINANCIAL SERVICES SELL LOANS TO OTHER COMPANIES