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Roger, Lawyer
Category: Real Estate Law
Satisfied Customers: 31769
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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I recently refinanced my mortgage and decided to apply to a

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I recently refinanced my mortgage and decided to apply to a local bank which in turn is owned by an out of state bank. One of the things that I liked was that the loan officer told me (verbally only) that the bank does not normally sell loan notes which I felt was a good thing apart from the very low rate. Come to find out that almost within 7 days the bank sold the note to Fannie Mae which annoyed me intensely because I felt they had lied to me. I also find that among the many many closing papers I signed there is in there a clause allowing them to do just that. I know I probably should have read the paper work thoroughly before signing but I really consider this sharp practice.
What I am really concerned about is the fact that Fannie Mae owe the government $140 Billion and need another $6.4 Billion to stay afloat.
Do I have ANY redress against the bank or have I completely been hoodwinked? Also if Fannie Mae goes bust in the next 15 years (the life of the note) am I liable for the outstanding amount?
Submitted: 5 years ago.
Category: Real Estate Law
Expert:  Roger replied 5 years ago.
Hi - my name is XXXXX XXXXX I'm a Real Estate litigation attorney here to assist you.

Unfortunately, there's nothing you can do about this if you signed the loan papers and received a notice that the lender can do this. The loan papers govern the agreement, not what someone verbally told you (there's likely a document in the loan papers that says this as well - that the documents govern the loan and is the complete agreement between you, and that you can't rely on any statements made which are contrary to the loan documents).

If you signed the loan documents, you've already agreed to this, and you can't back out now. Also, if you didn't read the documents (most people don't) that's not a defense.

That said, there's nothing you can do about the loan being sold as long as the terms of your loan don't change - which shouldn't happen.

I do certainly understand your concern, but if things go south, some other lender would purchase the note and you'd pay that lender under the same terms.

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