@CreditDrama85 wrote:
when a mortgage is sold how does it effect your fico score usually? the loan i have now was sold to another lender so will this tradeline be closed and re-reported by the new lender? if so, will it help my fico score if the loan i have now shows 0 balance (i have 4 90 day lates from 1 1/2 years ago).
It may take a little while for the reporting to the CRAs to get straightened out, but eventually the full history with both old and new lenders should appear in the reports. For borrowers whose history with the previous lender is good, that's obviously to the borrower's benefit; unfortunately for you that means those 90-day lates will probably not vanish forever.
At the height of the bubble, Washington Mutual decided to sell most of their prime 30-year-fixed-rate loans including mine, to Wells Fargo because WAMU wanted to go after higher-yielding subprime loans. Now my CRA shows the old WAMU tradeline through the date of the sale to WF, and a new WF tradeline with the same opening date as the original WF loan. In the WAMU tradeline the following notes appear:
Payment Status:Account transferred to another office
Comments: Transferred to another lender or claim purchased
Also when I login to the Wells Fargo website I can see 36 months of my payment history, even from back when WAMU had this loan. I have heard that while history usually is transferred correctly when a loan is transferred in some very rare cases mistakes are made, so to protect yourself many financial advisors recommend keeping every scrap of paper you ever get from your mortgage lender. A while back on a real estate blog I saw a posting by a lawyer whose client might have been in major trouble had she not kept statements from which she could prove the new owner of the loan had screwed up. Partly for this reason, while I do much of my personal finance online and get some bills online, I still opt to get hardcopy mortgage statements as documentation. I've never seen either WAMU or WF make an error on my mortgage, but still I check carefully (I even reverse-engineered their rounding algorithm because my interest calculations with Excel were a little different from theirs, I think the cumulative discrepancy in the principal balance was something like eight cents).
Message Edited by MattH on 02-01-2009 09:38 PM
TU 791 02/11/2013, EQ 800 1/29/2011 , EX Plus FAKO 812, EX Vantage Score 955 3/19/2010 wife's EQ 9/23/2009 803
EX always was my highest when we could pull all three
Always remember: big print giveth, small print taketh away
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