A past client of mine called me today and told me that her loan was sold to a new company and the letter she received said that all the terms of the original loan would remain the same, just the payment address and who the payment was made out to . The letter went on to state her terms of her original loan and the payment was wrong. The lette had her interest rate 1/2 percent lower than what she originally had. Her question was "Can I make the new lower payment?

My answer was "Yes you can, but it will catch up with you later!" When your loan is sold, none of the original terms can change. The only thing that can change is the escrow amount that you pay in for taxes and insurance. If the new loan service company makes a mistake, they will figure it out sooner or later. My advice to her was to call the lender and tell them of the mistake. I also advised her to send in her regular payment amount, then check and be sure the payment was posted correctly. Sending in a payment less than the amount can even go on your record as a late or missed payment!