After the loan files are reviewed they been sold to investors like Freddie mac and fannie mae. Suppose if a borrower chooses his purchase loan to be refinanced, they how will this work out? Could anyone explain it to me in detail?
2007-07-31 19:56:23 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
When you refinance, the amount of money of the old loan is paid off and that loan no longer exists.
If there's money left after the original loan is paid off, you get that.
The new lender now owns the loan and may sell it just as your old lender did.
2007-07-31 20:01:32 · answer #1 · answered by CoachT 7 · 1⤊ 0⤋
The loan appears on your credit report along with the phone number. At the end of your credit report, there is a 'creditor phone book' that lists the contact information for all of the creditors.
The mortgage company calls up the holder of the mortgage, gets the procedure from them to order your payoff, and then orders your payoff. The lender you are refinancing with will usuallly have you sign a borrower's authorization at loan application that gives them permission to get the payoff.
The payoff includes detailed instructions for the closing attorney or title company, on how the funds are to be sent to them...some require an overnight, some require a wire, they are all different.
When your NEW loan is ready for closing, the funds from your new loan will pay off your current mortgage first, and then if you are getting cash back, what is remaining will go to you minus any closing costs that you may have rolled into the deal.
The closing attorney or title company is 100% responsible, for making sure that the original mortgage holder gets the funds to pay off the mortgage in a timely manner. Then your original mortgage holder files a release of the lien with the county/city records, and this puts your new mortgage company in first position, in the event of a default.
That's how it works....it's not anything that you pesonally have to do...it's all taken care of for you.
2007-08-01 05:47:25 · answer #2 · answered by Expert8675309 7 · 0⤊ 0⤋
When you decide to refinance a loan, the new loan pays off the previous loan.
Is there something else you need to know?
2007-08-01 03:02:32 · answer #3 · answered by Diana S 2 · 0⤊ 0⤋
The old loan is left off. If there is any money you will be paid.
For more details visit
http://loan.sjdinfotech.com
2007-08-02 08:08:48 · answer #4 · answered by john_crazy_martin 2 · 0⤊ 0⤋