Your
loan can be sold at any time. There is a secondary mortgage
market in which lenders frequently buy and sell pools of
mortgages. This secondary mortgage market results in lower
rates for consumers. A lender buying your loan assumes
all terms and conditions of the original loan. As a result,
the only thing that changes when a loan is sold is to whom
you mail your payment. If your loan has been sold, your
existing lender will notify you that your loan has been
sold, who your new lender is, and where you should send
your payments from now on.
If
your lender goes out of business, you are still obligated
to make payments! Typically, loans owned by a lender going
out of business are sold to another lender. The lender
purchasing your loan is obligated to honor the terms and
conditions of the original loan. Therefore, if your lender
goes out of business, it makes little difference with regards
to your loan payments. In some cases, there may be a gap
between the date of your lender's going out of business
and the date that a new lender purchases your loan. In
such a situation, continue making payments to your old
lender until you are asked to make payments to your new
lender.