Real Estate Mortgage Transfer Will Not Affect Credit

The transfer and sale of mortgages between financial institutions does not affect the borrower’s credit score.

Question: I have had my mortgage for ten years but it was sold to another lender four months ago. We are planning to purchase a new home next month and will be applying for a home loan. Will our credit history show all ten years or only four months when the new bank purchased it?

Answer: Your credit score will show the past ten years of making monthly payments. It is common for lenders to sell mortgages and switch between financial institutions or third party companies. The original terms of your mortgage still remain and cannot be changed. However, payment information from the original lender and the new lender will appear on your credit report. This will actually improve your chances of getting approved for a new home loan. If you have recently missed a payment, that will also show on your credit report. Keep in mind that one or two late payments could mean that you have to pay higher interests as a result of a lower credit score.

Question: There is a rumor that there are huge alligators living in the sewers in New York City. Is this true?

Answer: This rumor has been circulating for around 75 years. When these creatures show up, they have typically escaped from their aquarium in residences all over the city, or dumped by owners who got tired of their pets. There is a lot hiding in the sewers, such as salmonella and E.coli. The brutal New York winter means that alligators have no chance of survival.

Question: Can you clarify how living trusts save money? If I formed a living trust, am I the “trustee” or the “beneficiary”?

Answer: You can name yourself as the trustee if you want to have control about all the assets placed into the trust while you are alive. Being the trustee means that you can also make decisions. The beneficiary is the person who will receive all assets in the trust after you die. That could be your loved ones, family, a charity, etc. Having an explicit trust while your alive saves your loved ones that time consuming process of sorting through a common will when you’re gone.