So we were under contract with a bank to purchase a foreclosed home and close on the 27th of this month. We just found out today that the bank that owned it sold the mortgage today to another bank. Luckily, the new bank is honoring the contract, however, we have to sign all the paper work all over again and the bank says the closing date might have to be pushed up the the 31st of this month. Was it legal for the original bank to sell the mortgage on the house when it was already under contract?? My realtor said he's never seen or heard of this before. Anyone ever heard of this?
2007-07-19 11:14:10 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
I'd never heard of it either, but it's surely legal. What I don't comprehend is why another firm would buy paper in foreclosure. Doesn't make sense, but sounds like they did it.
At any rate, it doesn't sound like it's going to cost you anything other than more time to resign all the documents.
Good luck with your new place.
2007-07-19 11:24:42 · answer #1 · answered by acermill 7 · 1⤊ 0⤋
Let me preface all of this with "I'm no lawyer":
The bank sold the mortgage to another bank. As stated previously, this is done all the time, and the mortgage may be sold again after you close on the property. They didn't sell the property itself to another party, only the financing. See the physical property and the financing as two separate entities.
2007-07-19 20:17:53 · answer #2 · answered by G 2 · 1⤊ 0⤋
This make no sence at all. First off there is NO mortgage to sell. If the home was foreclosed then the mortgage is non-exsisting. And why would another bank buy this property??? The bank is in the money business not the real estate business. I think you have miss understood something in this transaction. This just makes no sence to me but as far as legal.......................I guess they can do whatever they want with their house.
2007-07-19 21:30:21 · answer #3 · answered by Dano N 3 · 0⤊ 1⤋
this is not unusual...it is done all the time....
you will notice even after you have had your loan for awhile it will get sold again and again. this is just a way to for the financial instirutions to shift their receivables...no reflection on you....
good luck
2007-07-19 18:18:59 · answer #4 · answered by Blue October 6 · 1⤊ 1⤋