Mortgage Lender reports account closed

[antdogg]

I just received an alert about a score drop. I checked it out and my mortgage lender has reported that my account was closed and sold to another lender. My score dropped

12points on Experian, 18 points on Equifax and 42 points on Transunion.  I contacted the lender and they are saying the account is still open, keep sending in payments. How should I straighten this out?

[ezdriver]

What is there to straighten out? Until you receive written notice that your loan servicer has changed, you continue to pay as you always have. A tradeline being sold is very different from being closed. Your alert is messed up. I don't use them or believe them.

[antdogg]

Thats the point. The trade line reads, "CLOSED. Sold to another lender."  The effect is the drop in score.  Thats what I want to straighten out. Since all 3 reports show "Closed. Sold to another lender." All 3 scores have dropped.

[FSFdoppleganger]

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@antdogg wrote:

I just received an alert about a score drop. I checked it out and my mortgage lender has reported that my account was closed and sold to another lender. My score dropped

12points on Experian, 18 points on Equifax and 42 points on Transunion.  I contacted the lender and they are saying the account is still open, keep sending in payments. How should I straighten this out?

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Maybe I'm missing something... Let's see

1- OP did not say that he stopped making payments.

2- He did not say that he is worried that the account is sold (who cares account get sold all the time)

3- He did say however that his score has dropped downward 12-18-42 points and there's nothing to straighten out?!. Have we gotten to that point where we just have to suck it up? How fair is it to be penalize for something you did not do or that did not happen?.

My advice OP, call your lender and find out if the loan was closed or transferred (there is a difference) to a new lender. Technically you were supposed to be notified of either action in writing. Regardless, you need to dispute the reporting with all the CRAs, if your lender does not want to fix the problem contact the BBB if necessary or your Attorney General (that may spook'em a little). I doubt it was closed because your lender is asking you to keep sending the payments at the same address and to the same company. Again do everything in your power to get these points back...credit rating is not given but earned...

[Duty]

My loan was recently sold to another lender and the new lender is now showing on my report.  The loan that was transferred now shows "closed" and transunion added 29 points; Experian shows "transferred" which dropped my score 5 points and Equifax shows "transferred" which dropped my score 6 ponts!  Who is watching/monitoring these problems with these agencies!!  I'm thinking calling the original lender to have them change the status to "closed" for Equifax and Experian.

[TimeToRecover]

Are you sure the scores actually droped or are you using the word of a monitoring service that only provides FAKO scores.  

Mortgage loans get bought and sold all the time.  this is a common event.  I will say unless you are looking for new credit right at this exact moment why the panic.  Credit scores fluctuate on a daily basis.  Unless you are actively seeking credit for a large purchase Car, Home, etc just give it a bit to work out.  If you still have an issue after the new owner of the mortgage starts reporting then address it.  But until the new lender appears on your credit report you have no clue how your score will truly be affected.

This might be a really good subject for the "how scoreing works" forum.

[Duty]

Yes, they actually dropped.  I've been using a monitoring service that a Mortgage Broker has been using for ages.  I'm aware scores can flutuate so since this is the first time the new creditor (i.e., lender) is showing on my report,  I'll give it another month to see what happens.

[pizzadude]

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@Duty wrote:

Yes, they actually dropped.  I've been using a monitoring service that a Mortgage Broker has been using for ages.  I'm aware scores can flutuate so since this is the first time the new creditor (i.e., lender) is showing on my report,  I'll give it another month to see what happens.

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Are these actually FICO scores?   I don't know of any service that monitors all three scores, unless you mean the mortgage broker is pulling a tri~merge report for you.