Servicer holding payments in suspense. Says they can’t apply until they get approval from the invest

[SB_3484]

Hi. Hope this is on the right board. I am new here. First time home owner.

We have made our first 3 payments on time and even extra to principle only. Our loan was sold (same company, different state) after the first month.

The new servicer has reversed all the payments we made. Several thousand dollars sitting in suspense.

They assured me that we would not be reported to the credit bureau and they said that we would not be charged interest but the reason they cannot apply the money is because they are waiting for approval from the investor. They said they could not tell me who the investor is.

Can someone explain this to me in a way I can understand why the investor has to give approval for money to be applied? I don’t understand this and I am very frustrated. I just want my payments applied.

[RobynJ]

Put the money in Escrow for your own safety and document everything 

[SB_3484]

Will do. Thank you. We are keeping a close eye on everything. 

[babygirl1256]

@SB_3484 Let the new servicer place the funds in suspense . . . just keep paying UNLESS they instruct you not to. It's an accounting process and once all documents are in place the new servicer will take the funds out of suspense and apply accordingly. I wouldn't do anything differently unless instructed by the new servicer. Just communicate in writing and you will be covered. Wishing you success and a speedy resolution. 

[SB_3484]

Thank you! This makes sense but it had me really worried because none of my friends or family had ever heard of it or had it happen to them.