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Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308782  
Subject: Re: Mortgage transfer question Date: 8/23/2013 1:39 PM
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They do say that the new servicer will begin accepting payment on September 1. However, they go on to say current servicer will accept payment up to and including August 31.

Your payment is due Sept 1, but with the grace period, you probably have until Sept 16 (check your coupon to be sure) to make the payment without being charged a late fee.

Here's the key - don't get hung up on making sure that your payment gets to either servicer on or before Sept 1 - as already mentioned, you wouldn't be charged a late fee until probably after the 16th, depending on what your coupon says, and your payment would not be reported as 'late' to the credit bureaus until Oct 1. And since Sept 1 is a Sunday anyway - probably not a lot of payment activitiy is actually going to occur on Sept 1. Your previously mentioned concern that trying to work with the new servicer after Sept 1 is going to be 'too late' for the payment due Sept 1 is incorrect, because of the grace period.

So you have two options:

Pay the current servicer on or before Aug 31 - your Sept 1 payment will be processed by the current servicer and your loan will be sent to the new servicer with no payment due for Sept. If you are going to do this, I would suggest cancelling the automatic payment yourself (to be sure they don't pull it on Aug 30 or 31, because Sept 1 is a Sunday). You can either make a payment through their website, drop the payment in the mail to them, or send them a push payment from your bank, whichever you are most comfortable with.

Pay the new servicer on or after Sept 1, but on or before Sept 16 (or whatever your coupon says). You can follow the instructions in the letter, but I wouldn't drop the payment in the mail until Aug 30 at the earliest.

And, if you miss the date windows - it should still get resolved, but it may take a little while. If your payment gets to the old servicer after Sept 1, it will be forwarded to the new servicer. If your payment gets to the new servicer before Sept 1, they may hold it until they can process it, or they may send it back to the old servicer, depending on when they receive it. But to make things as smooth as possible, you should try to hit the appropriate timeframes.

AJ
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