San Jose Real Estate * REALTOR ® * Richard Gonzalez

Local media reports on TransUnion estimate to 10 percent delinquency rate  in the Bay Area.

This is a common question that many home owners have especially in this mortgage market and I wanted to share the perspective of this LA Times article.

Some borrowers receive the missive a few days after they close on their loans. Sometimes it arrives years later. But over the life of the mortgage, practically every homeowner is sure to receive one. The loan may be sold two, three or even four times to other lenders.

In mortgage-industry parlance, it’s called a “transfer of servicing.” But although some borrowers may take the notice as a personal affront, it’s really nothing to fret about.

“People shouldn’t take it personally,” said Alan Jones, senior vice president for servicing at Wells Fargo Home Mortgage in Des Moines. “It doesn’t have anything to do with anything they have done. It’s a standard business practice.”

Read article here