Can my mortgage company sell my note to another companyif a contract is in process on a short sale with no notice?

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Can my mortgage company sell my note to another companyif a contract is in process on a short sale with no notice?

I am doing a short sale on my home. I had a buyer, contract and an offer with an acceptance from my bank at the beginning of last month. Then 10 days ago, I received notice (through my realtor) that my bank sold the note to another bank. Do I have any recourse?

Asked on January 19, 2012 under Real Estate Law, Arizona

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

The lender that hold the paper on your home that you are trying to sell via a short sale is entitled at any time to sell the paper to another lender under the laws of your state if the loan is not a federally insured loan and under federal law if the loan is a federally insured loan.

Most likely the loan papers that you signed in conjunction with the loan you are writing about states that the loan is subject to transfer by the original lender to another entity.


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