loan can be sold at any time. There is a secondary mortgage
market in which lenders frequently buy and sell pools
of mortgages. This secondary mortgage market results
in lower rates for consumers. A lender buying your loan
assumes all terms and conditions of the original loan.
As a result, the only thing that changes when a loan
is sold is to whom you mail your payment. If your loan
has been sold, your existing lender will notify you
that your loan has been sold, who your new lender is,
and where you should send your payments from now on.
If your lender goes out of business, you are still obligated
to make payments! Typically, loans owned by a lender
going out of business are sold to another lender. The
lender purchasing your loan is obligated to honor the
terms and conditions of the original loan. Therefore,
if your lender goes out of business, it makes little
difference with regards to your loan payments. In some
cases, there may be a gap between the date of your lender's
going out of business and the date that a new lender
purchases your loan. In such a situation, continue making
payments to your old lender until you are asked to make
payments to your new lender.