So, banker types, if WaMu goes bye-bye...

[Will Collier]

I posted the same question to a different forum, got this response in an email from an actual mortgage broker:

> Homeowners are protected by the Servicing and Transfer Act which is part
> of the RESPA.
>
> As part of this regulation your current lien holder must perform the
> following prior to any sell of your mortgage;
>
> 1. Notify you 15 days before your next due date that your loan
> is being transferred. Your current servicer will mail you a "good bye
> letter" and your new servicer will mail you a "hello letter" which will
> detail the new lenders payment mailing address, your new loan number and
> contact information.
>
> 2. If your mortgage has an escrow account all taxes and
> insurance impounds that is due within 45 days of transfer must be
> dispersed prior to the transfer of your mortgage. Taxes in Lee County AL
> are due in October 1 but you have until December 31 to pay them so if
> WAMU sells the loan the taxes will have to be paid.
>
>
>
> ** If taxes are not paid in a timely manner the unpaid tax amount can
> become a lien against the property which will supercede any other liens
> on the property (your mortgage) this is unlikely but you never know so
> he needs to keep an eye on his escrow account and make sure it is paid.