Ask a Lawyer and Get Answers to Your Legal Questions
Good morning. I'll be assisting you with your question.
Yes, it is common for a mortgage to be sold from one company to another. Your mortgage agreement specifically allows for this to happen (assuming you have a standard agreement).
That said, the fact that it has been sold to the company you've applied to refinance with, that is a very strong sign that it's been approved or is very close to approval. The notice you received is require by law.
That was not my question. Bank of America is our current lender. We have applied for refinancing with Americash. We have not yet received approval nor has a closing date been set. But Americash apparently has contacted our insurance company and has Bank of America removed as the lender and Americash is now listed as the lender. My question was is this practice normal and is it a sign they are planning to approve our refi application
The answer to both questions is yes, this is part of the normal refinance process and it is a sign they are planning to approve the refi.
It is both a normal part of the refi process and the notice being sent is a legal obligation.
So it would be highly unusual for us to be turned down for refinancing given that Americash has already had themselves listed as the current lender on our home insurance policy?
Yes, it would be unusual. The only way it could happen at this point is if Americash came upon some new information giving them cause to back out. However, if they purchased the loan, they would be doing so under a refi agreement. Otherwise BOA would have no reason to sell it to them.
It is certainly a good sign.
Do you have any questions?
So should I call or email the rep at Americash and push for a closing date. Our lock on the refi rate is good until July 18. Or should I just leave things alone and wait for them to tell us they are approving the refi
I'd suggest you call Americash. Just like with any other situation, the squeaky wheel gets the grease.
When I call them should I let them know I have received the notification of change of lenders on the home insurance policy?
You should at least inquire about where in the process you are. They will likely tell you that a closing date is near, and when you have them on the phone, you can ask them to schedule it.
They are doing thousands of these a month. It never hurts to get someone to look at yours.
but not tell them that I know they have already changed the lender on the insurance policy?
You can tell them you know it has been changed. It doesn't really matter at this point.
Thank you for your help. I'm thinking of using the notification as an opener, indicating that we were excited to see the lender had been changed on the insurance policy and wanted to know where that meant we were in the process and could we schedule a closing date. Would that be appropriate?
Yes, that is what I'd suggest you do.
Thank you. This has been very helpful.
Glad to help.
If I can't do anything else for you, please remember to "Rate" my answer before you go. Good luck!